The most popular and the largest stablecoin by market capitalization, Tether (USDT), is well-known in the industry and has been broadly accepted by many crypto fans globally. But, of course, it hasn’t been exempted from controversies around its issuer but remains a heavyweight among the stablecoins available.
The market capitalization of Tether stands at $68.35 billion, with a circulating supply of 68,349,613,035 USDT as of press time, which makes this stablecoin the third-largest crypto in terms of market cap. However, do you know that there are plenty of stablecoins offerings circulating there which have the potential to dethrone USDT at some point? Let’s dig into them, and you can make your choice.
Overall, and as a well-known fact, the crypto market is hugely volatile, and that’s not subject to discussion or controversy. It’s a reality. That’s why people look for alternatives to back their crypto holdings in coins that are pegged to real-world assets such as the US dollar.
USDC, BUSD, DAI: The Real Competitors
One of them is USD Coin (USDC), which currently has a market capitalization of $28.95 billion and ranks among the top-10 largest cryptos. This stablecoin is entirely pegged to the US dollar, becoming some sort of bridge between the greenback and trading on crypto exchanges. CENTRE powers its technology, and among the stablecoins, we can consider it the closest competitor of Tether.
Next on the line is Binance Coin (BUSD), which ranks in the 12th place in terms of the market cap, currently at $12.34 billion. BUSD is also a fully collateralized US dollar stablecoin born in Binance and received approval from the New York State Department of Financial Services (NYDFS).
DAI Ecosystem Keeps Expanding Significantly
The third stablecoin that could eventually become a real competitor in the stablecoin’s competition is Dai (DAI), which although it remains in the 30 the place of the market cap ranking ($6.10 billion), experts in the industry believe that its level of adoption shows a growing potential to become a real deal in the stablecoin sphere. DAI is soft pegged to the greenback and is held within smart contracts.
The Maker Foundation launched it in 2015 as an open-source project, and it keeps releasing interesting projects such as the Multi-Collateral Dai. The holders of this stablecoin could also earn interest through the Dai Savings Rate mechanism.
What are your thoughts on these stablecoins? Are they real competitors on the scene?