Stablecoins have become prominent payment rails in the world of cryptocurrencies commanding $177 billion in fiat value today. The top ten stablecoins by market capitalization represent the largest share of the value in the fiat-pegged coin economy and many of these tokens grew exponentially last year. Terra’s UST stablecoin grew the most last year, jumping 5,431% in 2021.
A Deep Dive into Stablecoin’s Growth During 2021
Stablecoins today make up 9.77% of today’s $1.8 trillion crypto-economy, or $177 billion in USD value. While many digital assets have grown by leaps and bounds over the past year, stablecoins have also seen their market valuations increase as issuances have increased month after month.
Tether (USDT) is the top stablecoin, in terms of market capitalization with $78.3 billion. USDT alone represents 4.32% of the entire crypto economy’s $1.8 trillion and amid the $177 billion stablecoin economy, USDT towers over the pack by 44.24%.
On January 2, 2021, Tether (USDT) had a market capitalization of approximately $21.2 billion and as of January 2, 2022, it has increased by 269.81% to reach $78.4 billion. The Usd coin (USDC) once had a market capitalization of $4.1 billion on January 1, 2021, and about 12 months later it has grown by 936.58% to reach $42.5 billion.
The third-largest stablecoin binance usd (BUSD) had a market valuation of around $1.07 billion on the first of the year in 2021, and on the first day of 2022, it was $14.4 billion seeing a 1,245.79% increase.
Terra’s UST stablecoin grew by 5,431.22% in 12 months, from $182.6 million on January 1, 2021 to $10.1 billion on the same day in 2022. Makerdao’s DAI grew by 641 .66% from $1.2 billion on January 1, 2021 to $8.9 billion on January 1, 2022.
Magic internet money (MIM) was not around on January 1, 2021, but 128 days ago or four months ago, MIM had a market cap of around $879 million. MIM grew by 422.18% in four months to $4.59 billion by January 1, 2022.
The stablecoin frax (FRAX) had a market capitalization of $71 million on January 1, 2021, and on the same day in 2022 it was $1.8 billion. FRAX increased by 2,435.21% in 12 months. The eighth largest stablecoin trueusd (TUSD) rose 322.54% between January 1, 2021 and January 1 this year.
TUSD’s market cap last year was $284 million and on January 2, 2022, it was $1.2 billion. Pax dollar (USDP) had a valuation of around $346 million on January 1, 2021, and 12 months later it was $1 billion growing 189.02%.
Finally, the tenth largest stablecoin fei usd (FEI) has no market capitalization as of January 1, 2021, but 301 days ago or nine months ago it was $2.3 billion on April 4, 2021 FEI’s market capitalization actually declined during the 12-month period by 66.08% to $780 million.
