5 most popular stablecoins

5 most popular stablecoins image

If you are a crypto investor, then you might have several thoughts going through your mind regarding getting involved with cryptocurrencies. This is primarily due to their volatile nature and you may feel that all cryptocurrencies lack stability. However, that's not the case and not all crypto coins are volatile. They are known as Stablecoins in the crypto sphere.

What are Stablecoins?

Stablecoins are one type of cryptocurrency that often matches the value of real-world equity and has a foreseeable value and purchasing power. For example, a Stablecoin might be pegged against a real-world stable asset i.e. the US dollar. It can also be pegged against other real-world commodities like gold, silver or something similar in nature with relative predictability. As the name suggests, Stablecoins comes with a stable price tag and offer a much more stable and predictable value than traditional cryptocurrencies.

5 Most Popular Stablecoin

1. Tether

Tether is the most popular Stablecoin that offers the joint benefits of traditional currency and blockchain technology.

It is primarily designed to retain the same value regardless of the happenings in the crypto market. Tether's main mission is to provide its users every possible benefit of the blockchain technology right from the ease of currency transfer to keeping transaction records. Thanks to Tether, both traders and merchants can convert their cryptocurrency into real-world assets and transfer them with ease.

2. TrueUSD

TrueUSD is an ERC20 Stablecoin and is fully fiat-collateralized, legally secured and verified by third-party confirmations. The Stablecoin is managed by people who have past working experiences with companies like Google, PwC and UC Berkeley. Even though TrueUSD's market cap is rather small compared to Tether, but it is growing in popularity among crypto investors as the market expands.

3. DAI

What differentiates DAI from this list of Stablecoins is the approach taken by its developer MakerDAO to maintain its price stability. While other Stablecoins are mainly backed by USD reserves held in separate bank accounts, DAI uses a Collateralized Debt Position (CDP) smart
contract system, which is extremely complex and backed by Ethereum to maintain its price stability.

4. Paxos Standard (PAX)

Paxos Standard is the world's first standardized Stablecoin launched by Paxos Trust Company. Like Tether, PAX is also backed by US dollar reserves and its unique approach is supported by New York State's Department of Financial Services. According to PAX CEO Charles Cascarilla, Paxos Standard represents a massive technological advancement over other digital assets and leverages the traditional financial instruments without hampering global economic stability.

5. Carbon

Carbon is another price-stable cryptocurrency that runs on a variable financial ecosystem. The Stablecoin is pegged against the US dollar and is fully adaptable to smart contracts. Carbon maintains an elastic supply policy adjusting the inventory of the coin in response to its demand on the crypto market. Unlike other Stablecoins in this list, Carbon is built on a Hedera Hashgraph technology, which has many similarities with blockchain technology.

Even though Hedera has many similarities with blockchain, Hedera stands apart when it comes to providing remarkable throughput and processing speed. Because of Hedera, Carbon can be able to process more than 100,000 transactions per second!ConclusionEven though it might seem impossible to create a variable, fiat-free Stablecoin, but the coins mentioned above are trying to change things up.

Thanks to these Stablecoins, price-sensitive investors can enter the crypto universe knowing that everything will be ok. Stablecoins are here to stay and might challenge the legitimacy of the traditional financial ecosystem and the weaker government policies worldwide.

0 0

Like us

Copyright © 2017 - 2019. All rights reserved.