As markets are collapsing, more and more stablecoins are increasing their market shares: Meet most promising newbies
Amid an accelerating market collapse triggered by the FTX/Alameda drama, stablecoins have solidified their stance on the cryptocurrency market. This process should be attributed to two interconnected catalysts.
Paxos’ USDP becomes top 50 asset by market cap
Pax Dollar (USDP) by Paxos, a USD-pegged stablecoin that promotes itself as the “world’s leading regulated stablecoin,” has entered the top 50 cryptocurrency assets by market capitalization.
With its $859.4 million in market cap, it eclipsed Lido DAO (LDO) and Compound USD (CUSDC) and is now the 50th largest cryptocurrency asset.
Also, two top-league stablecoins are now getting closer to the top 50. Gemini Dollar (GUSD) with a $816 million capitalization and TrueUSD (TUSD) with $769 million in circulation might be the next assets in the elite club.
Amid the ongoing crypto bloodbath, people are increasing the share of stablecoins in their portfolios. This motivates the issuers of centralized stablecoins to mint new assets. Also, the net capitalization of stablecoins is more or less stable compared to the plummeting values of Bitcoin (BTC) and altcoins.
Large-cap decentralized stablecoins gain traction in 2022
Alongside the Big Three of stablecoins — U.S. Dollar Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) — algorithmically-backed (decentralized) stablecoins are reaching new highs in Q4, 2022.
Currently, there are two decentralized stablecoins with a $1 billion+ capitalization: Dai (DAI) by the Ethereum veteran MakerDAO and Frax (FRAX) by the Frax Finance protocol.
USDD decentralized stablecoin by the TRON (TRX) ecosystem is now sitting at the 60th position of CoinGecko’s top assets by market capitalization.
It is also worth noting that the gold-pegged stablecoin Tether Gold (XAUT) is the only non-USD stablecoin in the top 100 with its $422 million capitalization.