Cryptocurrency has become one of the most prevalent technologies in the world. In order for a person to enter the digital space, it has become mandatory for everyone to have at least some knowledge of this technology.
Cryptocurrency is notoriously volatile, which reduces overall participation and limits its use (in general) as a usable exchange platform for goods and services. A stablecoin is a low volatility version of a cryptocurrency. Reducing volatility can be achieved in a number of ways, including backing the cryptocurrency with a stable asset.
Stablecoins are useful for investors who want to hold their assets in the crypto space. Switching from crypto to fiat currency can be expensive and time-consuming. Stablecoins offer investors the best of both worlds.
What is a stablecoin?
Stablecoin is a type of cryptocurrency backed by a physical asset. In cryptocurrency, maintaining market volatility has always been a big question mark and this has been answered perfectly by the stablecoin system. This combination of physical assets and crypto assets allows stablecoins to maintain their market volatility. Market volatility is a fundamental issue for any crypto asset. Negative misconceptions with the effectiveness of stablecoins, that is, by pegging the crypto with a physical asset, are corrected. Stablecoin development allows users to get the market value and other functions of the fixed physical asset. The most important element of the physical asset is that it does not experience market fluctuations on a daily basis. There will be fluctuations but it will be very small and not on a large scale like cryptocurrencies. Gold, elements, fiat money, metals, real estate, etc. are physical assets that are often used to stabilize cryptocurrencies. These physical assets are used for stable money development for businesses.
Top 10 Stablecoin List
Tether (USDT)
Tether is a very popular stablecoin first found in 2014 is money. This is one of the most used stablecoins in the crypto space for several years. Tether is a stablecoin pegged to fiat money. The primary factor with this stablecoin is that it can be exchanged for US dollars. This stablecoin is the epitome of low-risk trading and anti-market manipulation in the digital realm.
Dai (DAI)
Dai is a unique stablecoin backed and stabilized by Ethereum-based currency. At the first stage, this stablecoin is deposited in the MakerDAO vault, then this stablecoin acts as collateral for the user to use the Dai stablecoin. Because this stablecoin is worth more than the US dollar, MarketDAO secures the stablecoin by pegging it to the US dollar at a ratio of 1:1. Dai compared to Tether, the market is quite volatile but still very effective.
Binance USD (BUSD)
Binance USD is one of the most popular stablecoins in the crypto market. These stablecoins are generated from the Binance company. Basically, it is Binance crypto pegged to cash, more specifically the US dollar. This is one of the most used stablecoins in the market.
TrueUSD (TUSD)
TrueUSD is a fully collateralized stablecoin. This stablecoin is a highly protected and verified ERC-20 token. This stablecoin is backed by the US dollar and is held at a 1:1 ratio like most popular stablecoins. Additionally, it is the leading cryptocurrency developed on the TrustToken platform.
USD Coin (USDC)
USD Coin is a popular stablecoin issued by a domain called Center, a joint venture between Circle and Coinbase. This stablecoin is pegged to US dollar-backed assets. These assets are regulated by United States financial institutions. This stablecoin has a wide range of uses in the crypto market, but is mostly used in decentralized finance mechanisms.
Digital Gold Token (DGX)
Digital Gold Token is a stablecoin backed by gold. This stablecoin was developed on the Ethereum blockchain. This stablecoin is highly effective for digital enthusiasts who rely on gold for stable market volatility. The DGX token is a digitally pegged store of value.
Pax Dollar (PAX)
The Pax Dollar is a stablecoin pegged to the US dollar. This type of stablecoin runs on the Ethereum blockchain. Currently, he is gradually rising through the ranks of the crypto chart.
Neutrino USD (USDN)
Neutrino USD is an algorithm-based crypto-collateralized stablecoin. This stablecoin is backed by the US dollar. This includes applications such as stablecoin issuance, staking, collateral, and reward payments. And these apps are transparent and their governance is secured by smart contracts.
TRIBE
TRIBE is an Ethereum-based stablecoin that provides governance to Fei protocols. This stablecoin provides a separate decentralized stablecoin called the FEI. This is one of the most popular stablecoins lately.
Final Words
Cryptocurrency has become a trending and mainstream space for most business platforms in the digital space. Enormous market fluctuations have forced businesses to move away from this area and look for an alternative. The stablecoin development was specifically introduced to provide a solution to this defect and restore lost business. The primary ability of stablecoin is to maintain market volatility. This has brought a wide variety of new businesses into the digital space.
Stablecoin development is considered the next big thing in the crypto market. Stablecoins are predicted to be the driver of the digital economy in the future, as business platforms enter this space for extensive rewards and profits.
