Stablecoins have proven to be an essential part of the cryptocurrency ecosystem, providing price stability within the volatility of other digital assets. Most stablecoins are pegged to traditional fiat currencies or commodities and offer a safe haven for investors. Here’s a detailed look at the top 10 stablecoins you should know in 2024, based on market capitalization, utility, and overall market presence
Top 10 Stablecoins to Consider:
1. Tether (USDT)
- Price: $0.9994
- Market Cap: $119.78 billion
- 24h Volume: $47.88 billion
Tether is the most prominent among stablecoins that are pegged towards the US dollar mostly. It provides an opportunity for liquidity and fast transactions across different crypto platforms. Having reserves backing, it has gained the confidence of the traders to choose this secure way of transferring funds between different cryptocurrencies without necessarily converting into fiat. Having a large market cap and huge trading volume, makes this stablecoin a doorstep to the crypto-market especially when one is looking for trading pairs.
2. USD Coin (USDC)
- Price: $1.00
- Market Cap: $34.79 billion
- 24h Volume: $3.87 billion
USD Coin is the fully-backed reserve-tracked and regularly audited cryptocurrency issued by Circle and Coinbase. This offers complete transparency, especially for traders and businesses as it is integrated into decentralized finance and many payment platforms.
3. Dai (DAI)
- Price: $0.9999
- Market Cap: $5.85 billion
- 24h Volume: $163.57 million
DAI is impressive because it’s actually a decentralized stablecoin managed by the system of smart contracts and collateral from MakerDAO. Instead of traditional fiat, DAI is anchored in a pool of crypto assets, such as Ethereum. In this regard, it becomes pretty popular because it ensures that the users are independent of centralized authorities.
4. First Digital USD (FDUSD)
- Price: $1.00
- Market Cap: $3.20 billion
- 24h Volume: $4.08 billion
FDUSD is becoming popular because it stands strategically as a stablecoin behind the fiat currency reserves. It offers quick, safe transactions across the globe, mainly in areas with limited access to conventional banks. Its recent increases in market cap and volume indicate its growing demand in the crypto world.
5. Ethena USDe (USDE)
- Price: $0.9978
- Market Cap: $2.43 billion
- 24h Volume: $102.70 million
USDe is the stablecoin pegged to the US dollar, that is administered by the decentralized Ethena’s ecosystem. It offers liquidity and is always utilized by users in the decentralized lending and borrowing applications of Ethena. Though it has lesser volume turnover in comparison to some other bigger ones, growth in market cap and volume might indicate stability and niche utility.
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6. USDD (USDD)
- Price: $0.9987
- Market Cap: $745.36 million
- 24h Volume: $4.51 million
USDD is pegged to the US dollar and operates on the TRON blockchain. It uses an algorithmic mechanism to maintain its peg, so one can draw some likeness towards Terra’s UST. More use cases in the DeFi space and its integration into numerous platforms make sure that USDD stays relevant amidst the stablecoin alternatives.
7. PayPal USD (PYUSD)
- Price: $0.9998
- Market Cap: $688.22 million
- 24h Volume: $36.09 million
Paypal’s entry in the stablecoin space, with PYUSD, is aimed at streamlining cross-border payments and fostering crypto adoption. Pegged to the dollar, PYUSD will make it easy for users to send, receive, or convert cryptocurrencies directly through PayPal’s platform, increasing easy access to the general public.
8. Tether Gold (XAUT)
- Price: $2,635.87
- Market Cap: $650.69 million
- 24h Volume: $7.18 million
Unlike any other stablecoin that is pegged to fiat currencies, the XAUT is pegged on physical gold. This places it on a different level of being hybrid and appeals to investors who want to hedge against volatility in crypto and inflation in traditional currency. Each token represents ownership in one troy ounce of gold and carries security through real-world asset backing.
9. Frax (FRAX)
- Price: $0.9968
- Market Cap: $648.08 million
- 24h Volume: $40.66 million
Frax is a unique hybrid stablecoin that is partly backed by collateral and partly algorithmic, thus becoming the first fractional-algorithmic stablecoin, meant to give both scalability and stability. It has marked its identity in the DeFi world due to various innovative methods of interacting with decentralized financial products.
10. PAX Gold (PAXG)
- Price: $2,653.52
- Market Cap: $514.26 million
- 24h Volume: $16.27 million
Similar to Tether Gold, PAXG is a stablecoin backed by physical gold. PAXG provides an exposure to the value of gold in a digital asset format, a secure and liquid way to invest in gold with no physical bars on the balance sheet, which is very popular for users looking to have traditional asset exposure in a blockchain form.
Stable coins are absolutely a necessity for investors and traders as a stable gateway for volatile cryptocurrencies to touch base with the normal financial systems. From the following top 10 stablecoins, each represents different unique features- whether through centralized or decentralized control, fiat or asset backing, or innovative mechanisms for stability. Of course, in the process of crypto market evolution, these stablecoins will play a significant role supporting liquidity, payments, and cross-border transactions.
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