Wednesday, June 29, 2022
Home Crypto News Analysis Stablecoins USDT, USDC, BUSD, DAI, TUSD Grew 574% in 2021

Stablecoins USDT, USDC, BUSD, DAI, TUSD Grew 574% in 2021

- Advertisement -

Although stablecoins are rarely seen in the news, precisely due to the lack of change in their prices, it is important to note their growth this year, with greater use due to the high market.

On average, the eight largest stablecoins had a 574% growth in their market capitalization. Some like USDC had a growth of 10 times, while the Tether (USDT) grew more than 3 times since January 1st of this year.

This growth can be associated with the heated market of 2021 that caused not only Bitcoin, but many altcoins to break historic highs. Furthermore, it is worth noting that decentralized stablecoins were not left behind in this race.

Tether is still the biggest

With a 3.66x growth compared to earlier this year, Tether (USDT) remains the largest stable coin on the market. Tether also remains the target of regulators due to the lack of transparency regarding USDT reservations.

Because of USDT untrusty reserve situation, another stablecoin is gaining ground in the market. This year the USDC, managed by Circle and Coinbase, grew 10.9 times and already has 42 billion dollars in its reserves, half the size of the USDT, at 80 billion.

When we add up the supply of the eight largest stablecoins — USDT, USDC, BUSD, DAI, TUSD, USDP, and USDN — we see a growth of 574% this year.

Although they are mostly used for trading on exchanges, this growth is drawing the attention of governments seeking to protect their local currencies and also consumers of these stablecoins, because stablecoins issuers act like banks, so to counter these stablecoins governments around the world are accelerating their intentions to create CBDCs, digital currencies of central banks.

Decentralized Stablecoins

Even though this sector is dominated by centralized stablecoins, which depend on a central entity to issue these assets and manage reserves, it is important to note the growth of decentralized projects.

DAI, whose backing is kept in other cryptocurrencies such as Ethereum, grew 7.8 times this year, jumping from 1.2 billion to 9.3 billion coins. In other words, it grew more than the USDT and remained close to the USDC, which grew 10.9 times.

The TerraUSD (TUSD), called algorithmic stablecoin, had the highest growth among all Defi stable coins. Jumping from a measly 181 million to 9.94 billion in the last twelve months, the TUSD grew 54 times, about five times more than the DAI and the USDC.

It is worth remembering that even WhatsApp is using a stable coin. Earlier this month, the world’s most popular messenger introduced the  Pax Dollar (USDP) into its app, allowing users to send money to each other using this currency.

This year Facebook announced that they are launching their Novi wallet without Diem, but with the help of Coinbase and stable coin Paxos. The move was strongly opposed by US senators.

Even though their prices are stable, and because of that they don’t appear so much in the media, stablecoins are a good indication of the market sentiment for cryptocurrencies, which had a great year in 2021.

- Advertisement -


The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.


Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Santiment: Terra Luna Classic (LUNC) 107% and USTC 320% Sudden Uptick Might Reawaken Interest Soon

  Santiment Reports Terra Classic (LUNC) and USTC Recent Surge Can Revive Interest In Coins Soon. window.coinzilla_display =...

How Do Crypto Trading Bots Work and Are They Worth It?

Trading has greatly transformed during the last decade — instead of traditional old-fashioned currencies, we have got innovative and decentralized money. Instead of closing...

Terra Luna Classic (LUNC) Accepted as Payment in StarShip Universe, Also 1.2% of All LUNC Payments To Be Burnt

  Terra Luna Classic (LUNC) is accepted as payment inside the StarShip Universe with a 1.2 percent tax burn in the largest new metaverse, StarShip...

BabyDoge Team Announces Burn Date Of 50 Quadrillion Tokens, All Coins To Be Burned In One Transaction

Shiba Inu's Rival, Baby DogeCoin (BabyDoge) To Burn 50 Quadrillion Tokens on July 1st. window.coinzilla_display = window.coinzilla_display...

21Shares Launches Crypto Winter Products to Protect Investors From Bear Market

21Shares Launches "Crypto Winter Suite." window.coinzilla_display = window.coinzilla_display || ; var c_display_preferences = {}; ...

4 Basics Of Bitcoin Arbitrage

In the world of alternative investments, many savvy investors employ arbitrage to take advantage of price fluctuations in the market. Arbitrage is a term...

Ripple Confirms Partnership With UK Sports Car Company Lotus

  The sports car company will launch its automotive NFTs on Ripple’s XRPL. window.coinzilla_display = window.coinzilla_display || ; ...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.