Stablecoins Now At $187 Billion, UST And USDN Volume Rising


There has been rapid growth in the stablecoin economy, with a recent total of $187 billion, which is pretty close to the $200 billion thresholds.

Stablecoins such as Terra’s UST and Neutrino Protocol’s USDN are gaining popularity, even while Tether remains the most widely used.

They saw a nearly 30% and 44% increase in issuance over the past month, respectively. In other words, if this trend continues, it will easily exceed $200 billion in the coming months.

Stablecoins Strong USD Support

Compared to other digital currencies, stablecoins are designed to be just that: stable.

Some coins are pegged to the US dollar meaning that each coin is fully backed by a dollar of cash, treasury bills or other secured assets and thus can be exchanged at will.

One-tenth of all digital assets, including cryptocurrencies, are represented by these tokens.

Total Market Cap of UST at $14.68 Billion on the Daily Chart | Source: TradingView.com

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Tether for $80 Billion

Tether, the largest stablecoin by market value, has seen a 2% increase in supply in the past month and now stands at more than $80 billion.

The stablecoin market is dominated by USDT, with a share of 43.78%. Moreover, it is the third largest cryptocurrency, after Bitcoin and Ethereum, in terms of market valuation.

After Tether, we have USDC or the USD currency, which has a market cap of $52.5 billion, making it a significant portion of the overall market.

Tether accounts for 28% of the stablecoin economy and is the fifth largest cryptocurrency after Binance Coin (BNB), which ranks fourth.

Stablecoins are moving forward

Investors have high hopes for Terra’s UST, one of the fastest growing stablecoins, as well as the Luna and UST projects. Its market cap is currently $14.7 billion, up nearly 30% from the previous month.

USDC trades regularly with Tether, accounting for 65% of Monday’s tether swaps. Tether is followed by BUSD, USD, EUR and WETH as the top pairs trading with USDC.

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While USDT and USDC saw no significant gains in the past month, UST, FRAX and USDN rose in their 30-day issuance prices.

Terra’s UST rose nearly 30% and the stablecoin now has a market cap of around $15 billion.

More room for growth

Last month, FRAX, the first fractional algorithmic stablecoin protocol, saw its 30-day issuance rate rise 9.5%, and Neutrino Protocol’s USDN rose 44%.

Stablecoins facilitate faster trading

Meanwhile, Stablecoins Like UST and USDN are mainly used today to facilitate trading other more volatile digital assets, such as Bitcoin.

However, companies around the world are developing stablecoins that businesses and households can use to transact, which could help make the payment system faster, more resilient and more inclusive.

Featured image from Bitcoin News, chart from TradingView.com

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