All Stablecoins Note Increasing Demand As Combined Market Cap Surpasses $121 Billion – Crypto Mode

Stablecoins continue to play an essential role in the cryptocurrency industry. As their combined market cap is now well above $120 billion, it will be interesting to see what happens next. More importantly, all pegged assets appear to note substantial growth recently, which is good to see. 

Stablecoins Continue To Grow

On paper, there isn’t much reason for traders to like stablecoins. They represent a digital fiat value but cannot go up or down in price. More specifically, their value cannot fluctuate too much, even though some pegged assets note an average price differential of $0.03 or more. A welcome discrepancy when that brings the value to above $1, but problematic in other scenarios.

At the same time, stablecoins are the primary trading pairs for the top crypto assets these days. Bitcoin, Ethereum, Cardano, and others all note volume from pegged currencies first and foremost. Whereas fiat-based trading pairs were the norm a few years ago, it is now essential to gain a USDT, USDC, or DAI pairing. An intriguing development that many people seem to ignore for whatever reason.

Today, the combined stablecoin market cap sits above $121 billion. An impressive feat, considering this cap was just $15.6 billion a year ago. Such strong growth is not due to one stablecoin, even though USDT dominates the overall landscape with relative ease. Even though there are now over a dozen stablecoins, it will remain challenging to dethrone the leading project by market cap.

Source: Messari

What is rather interesting is how there is growth among all of the top stablecoins. Some note more success than others, but they all appear to perform relatively well. Increasing issuance and demand is an essential first step, as multiple pegged currencies can co-exist with issues. Even if most of them represent a digital dollar value, there are reasons to pick one over the other.

What Comes Next For Pegged Currencies?

Given the growth curve of stablecoins and their market cap, it seems there will be more similar momentum for the foreseeable future.  None of the existing projects take away market share from the rest, as they all keep growing. The growth of USDC has been impressive over the past few months, although BUSD isn’t doing that bad either.

Whether the likes of HUSD, TUSD, SUSD, PAX, and DAI can keep making an impact remains unclear. There is a critical difference between centralized, algorithmic, and hybrid stablecoins. Some offer benefits over others, depending on personal preference. Not everyone favors centralized solutions, as bank accounts can be closed and funds frozen in the blink of an eye. Such a development would be highly problematic for holders of that stablecoin.

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