Cryptocurrency has now become popular all over the world. The world of crypto has become so wide and vast that with each new day there are new concepts and terms to learn about. While Bitcoin was the first coin to come into existence, many altcoins (currencies other than bitcoin) such as ethereum, dogecoin (doge to INR), cardano, ripple have entered the market. Similar to these, there are cryptocurrencies known as stablecoins that are considerably more reliable alternatives, especially for novices, because they lack the high risk, high volatility aspect. Stablecoins are a type of cryptocurrency that attempts to provide price stability by being backed by a reserve asset such as gold or the US dollar. Let’s find out which are the best stablecoins to invest in and which ones have done well so far.
Tether
Tether (USDT) is the most common and most popular stable currency on the market right now. Tether is based on blockchain technology and may be used to convert cash into digital money or held as an investment. It is safe and secure, and it is backed by the US dollar, which contributes to its price stability. Tether’s market capitalization is roughly $73,917,154,637 USD and its market price is fixed at one US dollar, with a 1:1 ratio.
Dollar Pax (USDP)
Pax Dollar, originally Paxos Standard, is a popular stablecoin that is climbing the cryptocurrency food chain. Pax Dollar is a stablecoin whose value is determined by the value of US dollars. It was originally made available in 2018. Pax tokens are issued on the Ethereum network. Pax Dollar has a circulating supply of 945,642,940 USDP and a market value of $945,746,263. The Pax dollar has seen significant growth in recent months and is a potentially stable coin.
Terra Luna
Terra is a blockchain-based payment system with a market cap of around $33 billion. You can buy Terra in India from any exchange platform. Stablecoins, like TerraUSD, are cryptocurrencies whose value is tied to real-world currencies. Luna, its counterweight, is in charge of running the Terra platform and creating more Terra stablecoins. Users are motivated to burn Luna to produce more Terra stablecoins when the price of a stablecoin rises above the value of its associated currency. Similarly, when Luna’s value drops relative to Terra, users are encouraged to burn Terra stablecoins to generate Luna. Luna’s value rises as more Terra platforms are used. Luna’s price has risen 14,300% since its launch in January 2021, when it was $0.64. It is now worth $92.64.
True USD (TUSD)
True USD is the first regulated stablecoin backed by US dollars. True USD debuted in January of this year. True USD has a 1:1 ratio and may be used to generate revenue by staking, mining, and holding stablecoins. True USD may be acquired through a variety of user-friendly and safe online exchange platforms. True USD has a circulating supply of 1,202,314,463 TUSD and a market value of $1,202,550,953 USD (about 120 million dollars). True USD is the second most popular stablecoin, and it’s gaining popularity in the cryptocurrency community.
Gold Pax (PAXG)
Pax Gold is a stablecoin that is backed by physical gold. Pax Gold is a cryptocurrency based on the Ethereum blockchain that may be traded anywhere in the world. It is based on the ERC-20 token and may be redeemed at any time for fiat cash or genuine gold. Individual Pax tokens are backed by a small amount of Good Delivery gold bars that comply with the London Bullion Market Association’s standard. It is available for purchase on a number of websites. Pax Gold has a circulating supply of 173,620 PAXG coins and a market value of $324,976,162 USD. Pax Gold can be redeemed at any time, at the current gold price. Because gold’s value changes depending on the market, it has substantially bigger fluctuations than its rivals.
Stablecoins have a market capitalization of $130 billion. Because of their size and potential impact on the financial industry, regulators are understandably interested in them. As financial market infrastructure, stablecoins, like payment systems and clearinghouses, are anticipated to be regulated. Various financial institutions and politicians have argued that targeting certain stablecoins that are deemed systemically significant and have the ability to disrupt payment and settlement procedures is the best way to regulate stablecoins. Although there has been significant discussion concerning stablecoin regulation, no formal collective decision has been made.