As of Wednesday, October 13, 2021, the market capitalization of all existing stablecoins is around $ 134 billion, which is 5.60% of the total crypto economy of $ 2.4 trillion. While centralized stablecoin projects dominate the package of dollar-linked tokens, a large number of decentralized stablecoins have settled with these centralized competitors. Algorithmic or defi-stylized stablecoin market caps have amassed billions of dollars over the past year.
While Tether and USD Coin are dwarfing the market, Algorithmic Defi Stablecoins are still shining
Tether (USDT) is now one of the oldest and largest stablecoins by market capitalization, while the second largest stablecoin valuation goes to the usd coin (USDC). Data from Coingecko’s stablecoin by market cap metrics shows that there were stablecoin assets of $ 134 billion as of October 13. The vast majority of these funds are owned by tether and usd coins as USDT has a market capitalization of around $ 70.9 billion and USDC $ 33.3 billion.
Despite controversial discussions about supporting some of these large stablecoin markets, they are the market leaders when it comes to dollar-pegged tokens. Both USDT and USDC together account for 77.61% of today’s stablecoin economy of $ 134 billion. However, decentralized competitors who support their own stablecoins in a variety of ways have started to see their market cap.
Top stablecoins by market capitalization according to statistics from coingecko.com as of October 13, 2021.
For example, the stablecoin DAI was the most popular decentralized stablecoin and the asset is secured by over-hedging through the Makerdao project. The stablecoin DAI also has the fourth highest market valuation just below Binance’s BUSD stablecoin. DAI’s market cap on Oct. 13 is $ 6.7 billion and the crypto asset posted a 24-hour trading volume of $ 343 million on Wednesday. DAI is considered an algorithmic stablecoin that is tied to the value of the US dollar.
Terra USD, Magic Internet Money, Liquidity USD, FEI rise among Makerdao’s algorithmic stablecoin
Terra usd (UST) is also an algorithmic stablecoin and its market capitalization is now $ 2.7 billion below that of the DAI. UST is followed by another decentralized stablecoin called Magic Internet Money (MIM), which was valued at $ 1.5 billion on Wednesday. The most active trading platform that exchanges MIM tokens today is the decentralized exchange (Dex) Trader Joe. Similar to other decentralized stablecoin projects, Magic Internet Money is issued by users of the credit protocol abracadabra.money.
The ninth largest stablecoin cap held by liquidity usd (LUSD) is around $ 658 million today and Uniswap V3 is the most active stablecoin exchange. LUSD is issued by the Liquity Protocol, another decentralized funding protocol (defi-credit protocol). There is also the Defi-Stablecoin project called Fei which issues a stablecoin called FEI, like the algorithmic stablecoin DAI. FEI’s market capitalization as of Wednesday is $ 543 million and a 24-hour trading volume of $ 79 million.
The above decentralized or algorithmic stablecoins, not endorsed by a company that offers audits and produced by the crypto community as a whole, account for 8.95% of today’s stablecoin market cap. That’s only $ 12 billion of the stablecoins in circulation today, valued at $ 134 billion. For the time being and for a long time to come, it is very likely that centralized competitors such as USDC and USDT will not be displaced. However, many of these algorithmic or defi-styled stablecoins have become top contenders in the marketplace and have made a name for themselves with no corporate support and little controversy.
What do you think of today’s stablecoin market and the 8.95% of defi and algorithmic stablecoins that have recently made strides in the crypto economy? Let us know what you think on this matter in the comments below.
Tags in this story
algorithmic, algorithmic stablecoin, algorithmic stablecoins, Binance’s BUSD, DAI, defi-styled stablecoins, FEI, Liquidity USD, Magic Internet Money, Makerdao, MIM, Stablecoin Supply, Stablecoin Supply Ratio, Stablecoins, Terra USD, Tether, USDC, USDT
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.