Here Are The Stablecoins That Will Have A Bright Future Ahead
In the world of cryptocurrency, stablecoins are the safest bet. They don’t have the high risk, high volatility factor and are a far more stable option, especially for beginners. Even if you are a seasoned crypto investor, stablecoins are a good choice for everyone alike. Stablecoins are a kind of cryptocurrency that try to give price stability and are backed by a reserve asset, such as gold or U.S Dollar. Stablecoins have gained popularity as they try to combine the best of both worlds, namely, the rapid processing and privacy of cryptocurrency payments, as well as the comfort of volatility-free, stable prices of fiat currencies. They lack the volatility of bitcoin yet have the purchasing power of the majority of cryptos. If you are looking for a safe way to invest then stablecoins are your best bet. Fiat-collateralized stablecoins, crypto-collateralized stablecoins, and algorithmic stablecoins are the three primary types of stable coins in circulation. Let’s take a closer look at each of these. Let’s take a look at the stablecoins that will make a good addition to your portfolio.
- Tether (USDT)
The most popular and arguably the best stable coin available in the market currently. Tether works on blockchain technology and can be used for converting cash into digital currency or can be kept simply as an investment. It is secure and backed by the U.S Dollar which helps to maintain its price stability. Tether’s market cap is approximately $73,917,154,637 USD (USDT to INR) and it’s market price is fixed at 1 U.S. Dollar, while it maintains a 1:1 ratio.
- Pax Dollar (USDP)
Pax Dollar, formerly Paxos Standard, is a popular stablecoin that is making its way up the cryptocurrency ladder. Pax Dollar is a stablecoin that is tied to the value of US dollars. It was first released in 2018. The Ethereum (ETH to INR) blockchain is used to issue Pax tokens. The circulation supply of Pax Dollar is 945,642,940 USDP, and its market capitalization is $945,746,263. The Pax dollar has shown a lot of growth in the past few months and is a promising stable coin.
- True USD (TUSD)
True USD is the first regulated stablecoin with US dollar backing. True USD was introduced in January of this year. True USD has a 1:1 ratio and may be used to make income via staking, mining, and keeping stablecoins. True USD can be purchased on various online exchange portals which are easy to use and secure. True USD has a market value of $1,202,550,953 USD (about 120 million dollars) with a circulating supply of 1,202,314,463 TUSD. True USD is the second most popular stablecoin, and it’s getting a lot of traction in the cryptocurrency world.
- Binance USD (BUSD)
Binance USD was founded by Binance and Paxos, two majorly renowned cryptocurrency exchanges. Binance is a US dollar-backed stablecoin that was founded in 2019 and swiftly grew to prominence in 2021. The regulatory body for the BUSD will be The New York State Department of Financial Services. To maintain its value and price stability, the BUSD is tied to the US Dollar at a 1:1 ratio. Binance USD is a cryptocurrency that may be used for various types of transactions throughout the world. Its coins are ERC-20, which is Ethereum’s standard protocol for smart contracts. Binance has a market value of $12,741,661,155 BUSD and a circulating supply of 12,742,488,912 BUSD coins.
- Pax Gold (PAXG)
Pax Gold is a stablecoin backed by actual gold. Pax Gold is a cryptocurrency that is based on the Ethereum blockchain and can be exchanged anywhere around the globe. It is based on the ERC-20 token and may be redeemed for fiat currency or actual gold at any moment. Individual Pax tokens are backed by a tiny percentage of Good Delivery gold bars, which adhere to the London Bullion Market Association’s standard. It is available for purchase on a variety of internet sites. With a market value of $324,976,162 USD, Pax Gold has a circulating supply of 173,620 PAXG coins. Pax Gold can be redeemed at any moment, at current gold values. Because the value of gold fluctuates based on the market, it has significantly higher variations than its other competitors.
Stablecoins account for a market of $130 billion. Regulators are naturally interested in them because of their magnitude and possible influence on the financial industry. Stablecoins, like payment systems and clearinghouses, are expected to be regulated as financial market infrastructure. Various financial organizations and politicians have advocated that the best method to control stablecoins is to target certain stablecoins that are deemed systemically significant and have the power to disrupt payment and settlement processes. Although there has been much speculation about stablecoin legislation, there has yet to be a definitive collective decision.
