Stablecoins are an incredibly interesting asset in the crypto market in recent years. While cryptocurrencies at the beginning wanted to deliver a refined option to FIAT currencies through the blockchain and wanted to liberate themselves from their rates, stablecoins were later created, which mapped the rates of FIAT currencies. In this article, we will talk about the top 3 Stablecoins in 2022.
What are Stablecoins?
Stablecoins are cryptocurrencies that are founded on the blockchain but are connected to the real value of a FIAT currency or other asset outside of the crypto world. These can be fiat currencies like US dollars, euros, or the British pound. Yet, these can also be special metals such as gold or other assets.
So if a stablecoin is pegged to the USD, then the value of that stablecoin is equivalent to the value of one US dollar at any given time. This indicates that stablecoins are “unchanging” in the sense that they adapt their value to the FIAT currency. Yet, they are of course subject to instabilities in the value of this FIAT currency, for instance, due to inflation or deflation.
Top 3 Stablecoins: Tether (USDT)
Tether was initially pitched as an actual coin in 2014. It is the most extensive and well-known stablecoin on the market. Tether has a market cap of more than $72 billion, making it the third largest cryptocurrency. It is available on more than 400 crypto exchanges.
Despite its exceptional functionality and position as a market leader, USDT has lately come under fire as the company has continually refused investigations and had to pay penalties for illicit activities in the US. Despite these hardships, USDT has functioned excellently as a stablecoin since its launch. Tether tokens are assembled on numerous blockchains—delivering effortless integration and adoption. Backed blockchains are Bitcoin (Omni & Liquid protocol), Ethereum, TRON, EOS, Algorand, Solana, OMG Network, and Bitcoin Cash (SLP).
Top 3 Stablecoins: USD Coin (USDC)
The USD coin was launched by the Coinbase exchange in 2018. USDC is the second-most extensive stablecoin. It has a market cap of $54 billion. This puts USDC in 4th place after Tether at Coinmarketcap. The USDC is available on more than 300 exchanges and functions broadly with financial establishments and regulators. Unlike Tether, monthly audits take place at the USDC.
Top 3 Stablecoins: Binance USD (BUSD)
After Coinbase launched USD Coin, the world’s largest crypto exchange Binance followed shortly in 2019 when it established its stablecoin. The market capitalization is 18 billion US dollars. This puts BUSD on number 12 on Coinmarketcap. BUSD is only available on more than 100 exchanges.
With the Binance Coin (BNB), Binance has already built the fourth-largest cryptocurrency by market capitalization. Its own stablecoin Binance USD is one of the 3 most extensive stablecoins in 2022 and among the leading 12 of all cryptocurrencies by market capitalization. The BUSD is now carried by almost all major crypto exchanges. At Binance, it delivers the benefit of not charging any fees.
Is Stablecoin a Good Investment?
As stablecoins have a “steady” price, they are commonly regarded as the securest form of investment among cryptocurrencies. Yet, as an investor, you should understand that stablecoins are generally favorably centralized and likened to “true” cryptocurrencies, which are fully decentralized. Tether, USD Coin, and Binance USD are all completely owned by their parent organizations.
The financial institutions that issue stablecoins get authority and money equivalent to regular banks, but without having to obey the standard rules in the traditional financial market. In recent years, the market capitalization of all coins has grown massively in a short time. As these types of cryptocurrencies become more and more active in conventional financial markets, buzzes for more regulation are getting noisier. They are also more powerless in a financial crash.
People can purchase stablecoins if they want to dive into the cryptocurrency world but are scared of the lofty volatility first or want to get to understand the processes first. Nevertheless, of course, they do not fetch any income, since their value is steady against the US dollar.
- Shiba Inu to Reach 1$ soon? This New Upcoming Development Proves it Right
- Top 5 Stablecoins by Market Cap
- Market Crash? Use These 3 stablecoins During The Crash
- Big News: Ripple Price is about to TRIPLE? This News Confirms…
- Binance has a Stablecoin (BUSD) and It’s signaling a Crypto Bull Market
- Top 3 Stablecoins to Buy instead of USDC
- Analysts are Predicting an upcoming Crypto Boom because of THIS!
- Can Shiba Inu Price Reach 10 Cents?
- Top 3 Altcoins to BUY in March 2022 – Best Cryptocurrency Investments
- Tether stablecoin crash to follow Terra’s disaster? This is what we know.
- Shiba Inu Price Prediction: How High can SHIB Price reach by 2030?
- Crypto Prediction 2023: What will happen to the top 10 coins in 2023?
- Ethereum Now Equals Bitcoin In Value Transfers And May Soon Exceed It
- What Is Tether? Will It Fall Like UST In The Future?
- The Big Ripple Price Prediction for 2023 – How high can the XRP price go in 2023?
- Stablecoin CRASH! Terra UST crashes amid Bitcoin Bear, what happened?
- Tron USDD stablecoin goes Live! Buy TRX before it MOONS +100%?
- Ripple Price Prediction – How High will XRP reach in 2050?
- What is DAI? Here’s an alternative Stablecoin to USDT and USDC!
- What is Tether USDT and Why should you care about its Traded Volume?
- Conservative Prediction: Can XRP reach $5 in 2023?
You might also like
More from Altcoin
Polygon vs Polkadot: Who Will Hit $10 in the Next 90 Days? Potential Scenarios Unveiled!
Which one will hit $10 in the next 90 days? Let's dive into Polygon vs Polkadot potential scenarios to find …
How High will XRP Price reach after Ripple wins the SEC Lawsuit? XRP 3$?
Will we then see a price explosion from the XRP coin to $3 if Ripple wins the SEC lawsuit? Let's …
BNB Price Prediction: 5 Reasons Binance Coin Could Hit $500 in the next 90 days!
How does the Binance Coin (BNB) look over the next three months? Let's take a look at it in this …