Discover the Top 10 Stablecoins by Market Cap

Tether (USDT) is the largest stablecoin by market capitalization, with a market cap of over $62 billion.

It's backed by a reserve of US dollars, held in a mix of cash and short-term US Treasury bills.

USDT is widely used in the cryptocurrency market as a store of value and a means of exchange.

Dai (DAI) is another large stablecoin, with a market cap of over $8 billion, and is pegged to the US dollar.

It's designed to be a decentralized stablecoin, meaning it's not controlled by a single entity or government.

USDC (USDC) has a market cap of over $50 billion and is issued by a consortium of companies including Circle and Coinbase.

It's also backed by a reserve of US dollars and is widely used in the cryptocurrency market.

The remaining seven stablecoins on our list, including USDD, BUSD, PAX, HUSD, GUSD, SUSD, and VAI, have significantly smaller market caps, ranging from $100 million to $5 billion.

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Stablecoins are a type of cryptocurrency engineered for stability in value, backed by fiat currencies like dollars or yen.

They serve purposes in commerce and investment, offering investors a way to partake in cryptocurrencies without handling private keys or encountering mining fees.

The most prominent stablecoins include USD Coin (USDC) and BinanceUSD (BUSD), which have raised over $200 million via initial coin offerings (ICO) this year.

The first stablecoin, Tether (USDT), was created in 2011 and is currently the largest stablecoin with a market cap of $1.9 billion.

Tether enables investors to make instant and secure payments, while also providing a stable valuation, similar to fiat currencies.

The dozens of existing stablecoins use the USD as their benchmark asset, but many are pegged to other fiat currencies issued by governments, such as the euro and the yen.

This means the fluctuations in the price of stablecoins are very limited, compared to high-profile cryptocurrencies like Bitcoin and Ethereum.

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Users typically receive one token for every dollar they deposit, and the tokens can be converted back into the original currency at any time, also at a one-to-one exchange rate.

Tether had a market capitalization of $62 billion on July 28, 2021, or slightly more than half of the $117 billion market capitalization of all stablecoins worldwide.

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Stablecoins are designed to be stable, which is a big departure from the wild fluctuations of conventional cryptocurrencies. They're tied to a reference point like a currency or commodity.

Stablecoins are considered more reliable than traditional cryptocurrencies because they offer stability for transactions. This makes them a safer bet for people who want to use digital assets for everyday purchases.

You can tie stablecoins to the U.S. dollar or the value of commodities like gold. This gives users a sense of security and stability.

Stability is maintained in stablecoins through collateral reserve assets or algorithms that regulate the supply. This ensures that the value of the coin remains stable, even if the underlying asset's value changes.

Here are some key characteristics of stablecoins:

Stablecoins come in various types, each with its own unique backing. Commodity-backed stablecoins are supported by assets like gold or real estate, providing a tangible store of value.

Commodity-backed stablecoins are often seen as a safe-haven asset, similar to gold. This type of stablecoin is backed by a physical asset that can be easily liquidated if needed.

Fiat-backed stablecoins, on the other hand, use currency as collateral in a regularly audited reserve managed by an independent custodian. This ensures the stability of the stablecoin and provides a high level of security.

Here's a breakdown of the different types of stablecoins:

Seigniorage-style stablecoins are a more modern approach to stablecoins, relying on algorithms and smart contracts to maintain stability. This type of stablecoin is often more flexible and adaptable than traditional stablecoins.

For your interest: How Do Stablecoins Work

Stablecoins come in various types, each with its own unique characteristics. They're backed by different assets, which provides an added layer of security and stability.

Commodity-backed stablecoins are supported by assets such as gold or real estate. This means that the value of the stablecoin is tied directly to the value of the underlying commodity.

Fiat-backed stablecoins, on the other hand, are backed by fiat currencies like the Chinese yuan. These stablecoins use currency as collateral in a regularly audited reserve managed by an independent custodian.

Crypto-backed stablecoins are backed by other cryptocurrencies. To counter the volatility of the underlying asset, these stablecoins maintain an overcollateralized position.

Seigniorage-style stablecoins rely on algorithms or processes rather than an asset or currency. They're governed by smart contracts on decentralized platforms.

Here's a breakdown of the different types of stablecoins:

USDD is a best usd stablecoin with a current market cap of $723.4 million. It's part of a newer generation of algorithmic stablecoins that maintain their peg through a complex mechanism of smart contracts and incentives.

USDD is backed by a decentralized autonomous organization (DAO), offering a glimpse into the future of community-governed stablecoins. This means that decisions are made by the community, rather than a central authority.

Transparency is a top priority for many stablecoin investors, and for good reason. USD Coin (USDC) has a current market cap of over $33 billion, and its commitment to transparency and regulatory compliance has instilled confidence among investors.

Regular audits are a key part of this transparency, and USDC adheres to this standard. TrueUSD (TUSD) also prioritizes transparency through regular audits by reputable firms, making it a preferred choice for risk-averse investors.

TrueUSD's full collateralization with US dollars, held in escrow accounts accessible by trusted third-party fiduciary partners, adds an extra layer of security and transparency. This level of security has made TrueUSD a popular choice among investors.

USD Coin's transparency has earned it a reputation as the most popular stablecoin, and its commitment to regulatory standards has made it a benchmark for the industry.

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Tether (USDT) holds the top spot with a market capitalization of over $68 billion, more than double that of the second-ranked stablecoin.

MakerDAO's DAI is the second-largest stablecoin, with a market capitalization of over $27 billion.

USDC, issued by Circle and Coinbase, has a market capitalization of over $23 billion, solidifying its position as one of the top stablecoins.

The market capitalization of Binance USD (BUSD) has grown significantly, reaching over $19 billion.

PAX, issued by Paxos, has a market capitalization of over $6 billion, making it a notable player in the stablecoin market.

The market capitalization of USDD, issued by TRON, has grown to over $1 billion, showing its increasing popularity.

DUSD, issued by DeFiChain, has a market capitalization of over $500 million, demonstrating its growing presence in the stablecoin market.

The market capitalization of HUSD, issued by Huobi, has reached over $400 million.

BGBP, issued by BCB Group, has a market capitalization of over $300 million, making it a notable stablecoin.

The market capitalization of GUSD, issued by Gemini, has grown to over $200 million, showing its increasing adoption.

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The top stablecoins by market capitalization are a great place to start when exploring the world of stablecoins. According to recent data, Gemini Dollar (GUSD) holds the top spot with a market capitalization of approximately $840.7 million.

PayPal USD (PYUSD) comes in second with a market cap of $376.57 million, offering seamless integration with traditional finance through its partnership with PayPal.

Here's a list of the top 5 stablecoins by market capitalization, based on the article's data:

Keep in mind that these numbers are subject to change and may not reflect the current market capitalization.

Let's take a look at the top stablecoins by market capitalization. According to the data, Tether (USDT) dominates with a whopping 70% market share on centralized exchanges. This is a significant increase from its competitors, and it's no wonder why it's the most popular stablecoin on the market.

Tether's market capitalization is followed closely by USD Coin (USDC), which has gained significant traction in the DeFi space. USDC is fully backed and managed by the Centre consortium, which includes companies like Coinbase and Circle, and is known for its transparency in the crypto space.

Here's a breakdown of the top 10 stablecoins by market capitalization:

As you can see, Tether dominates the market, followed closely by USD Coin and Binance USD. The other stablecoins on the list have smaller market capitalizations, but are still significant players in the market.

Tether Gold (XAUt) is a gold-backed stablecoin that offers the stability of gold and the convenience of cryptocurrency.

Each XAUt token represents one fine troy ounce of physical gold securely stored in Swiss vaults.

The gold backing is regularly audited to ensure transparency and bolster trust in the token's value.

XAUt tokens can be divided into increments as small as 0.000001 troy ounces, making it easy to hold amounts that fit your needs.

This makes gold portable, enabling you to convert your assets into digital tokens on various exchanges and take them anywhere.

Since gold is a relatively stable asset, many consider XAUt one of the best stablecoins for value storage in the market.

You can buy XAUt on decentralized exchanges.

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