A great number of digital currencies have swelled in value this year and as the end of 2021 approaches, the market capitalization of all 11,000+ crypto assets in existence is roughly $2.6 trillion Nowadays, it’s safe to say that dollar-indexed tokens, also known as stablecoins, have a strong presence in the crypto market. Today the market capitalization of all the stablecoins in the world is more than $152 billion or 5.84% of the crypto economy’s USD value.
Stablecoins have experienced massive growth in the crypto economy
Stables have been a hot topic in the cryptocurrency world, as the growth of these dollar-indexed tokens in 2021 has been quite large. Basically, a stablecoin is a type of cryptocurrency that leverages the value of an external reference such as the U.S. dollar or another fiat currency.
The largest stablecoin today in terms of market cap is tether (USDT) as its current market valuation is $ 73.95 billion. During the last 30 days, USDT’s market valuation has increased by 3.9%. The second stable coin in terms of market cap is the USD coin (USDC) with $ 37.6 billion, increasing 15.2% in 30 days.
2 Dollar-Pegged Tokens Represent 73% of Stablecoin Economy, Stablecoin Trading Pairs Dominate
While the stablecoin market valuation is $152 billion, USDT and USDC combined command $111.55 billion or 73.38% of the stablecoin economy. While the USDC’s market cap jumped more than that of the USDT, this is not the biggest increase last month in the top ten stablecoin rankings. The stablecoin terra usd (UST) saw its market cap jump by 164.1% and frax (FRAX) increased by 119%. The stablecoin magic internet money (MIM) swelled by 56.8% and liquity usd (LUSD) increased by 49%.
The presence of stablecoins is strong and in the last 24 hours the stablecoin trading volume was over 50% of the global crypto-economy trading volume. Bitcoin (BTC) markets alone show tether (USDT) represents 52.63% of all BTC swaps today and the stablecoin issued by Binance called BUSD commands 7.05% of BTC’s trade volume. USDC is the seventh largest pair to trade with BTC and captures 1.75% of all BTC swaps.
Ethereum (ETH) markets are not much different as USDT represents 45.11% of today’s ether trading pairs. BUSD accounts for 9.60% of all BTC swaps on Fridays and USDC orders 1.68%. Whether the crypto markets are bearish or bullish, stablecoins like USDT, BUSD, and USDC have been the primary trading pairs for BTC and ETH in 2021, alongside fiat currencies like USD, JPY, and EUR. The same can be said for a vast majority of the best coins in the crypto economy, as stablecoin pairs make up a large portion of transactions these days.
