Exploring The Top Stable Coins: Your Essential List

2024 has given birth to an era where the list of stablecoins has become endless. The concept of stablecoins was introduced so that the market can have a few coins that do not face complex price fluctuation as frequently and as complex as the other cryptos do.

A stablecoin is a kind of cryptocurrency that has comparatively lower price volatility and more stability. Stablecoins are pegged to a fiat currency and hence the prior is backed up by the latter. These coins provide stability to cryptocurrency exchanges. Here we have the list of the stablecoins that are considered the best

List Of Stable Coins

  • Tether (USDT)
Tether Coin

Tether is a cryptocurrency that is pegged to the US dollar. Therefore, the value of 

1 USDT = 1 USD. 

It was launched by Tether Limited in the year 2014. USDT links the value of cryptocurrency with the value of real-world assets, the USD. Tether Limited holds a reserve of US dollars.

For each Tether issued by the company. It holds an equivalent USD in its reserve. So, the company will have a total reserve equivalent to the total amount of Tether in circulation. 

USDT ensures stability as its value is securely stored in the form of digital currency. It provides daily reports detailing the amount of Tether in circulation and the total USD reserves that the company holds. 

  • USD Coin (USDC)
USD Coin

United States Dollars Coin was launched in the year 2018 and is backed by the fiat currency, USD. It is the second largest stable coin in the market while the first position is held by USDT. USDC operates on the Ethereum blockchain and if you have an Ethereum wallet you can easily access this token. 

USDC was launched by a consortium which is a combined venture of Coinbase and Circle. This consortium is referred to as the Centre which has reserves of USD for every USDC that is issued.

This stablecoin can be used for payments, remittances, and peer-to-peer transactions. The token undergoes regular audits and its reserve holdings are published for the public on a timely basis. 

  • Binance USD (BUSD)
Binance USD

Binance USD was launched in 2019 by Binance and Paxos and is pegged to the USD. BUSD is available for training on the crypto exchange platform of Binance and the stablecoin is issued by Paxos.

You can make transactions using BUSD at a quicker pace and lower price. The coin is fully compatible with all the regulations and legal compliances. You can use this coin to make purchases of services and goods, to invest, and to trade. 

This stablecoin operates in compliance with the NYDFS (New York State Department of Financial Services). Binance USD can be traded on Binance and other platforms and can be used to buy other cryptocurrencies as well. 

  • TrueUSD

TrueUSD was launched by the fintech company TrustToken in 2018. The parent company of True USD is known for creating tokenized assets which also stepped into the stablecoin realm. It is pegged to US dollars and is noted for its collateralization model.

This coin is completely pegged to USD and it is held in escrow accounts. The total amount of US dollars held by the company in reserves for each of the TruUSD coins in circulation is provided by the company for the coin holders.

You can get daily attestations from the company in this matter. It is built on the Ethereum blockchain and is easily accessible for the users. 

  • DAI

DAI is a decentralized stablecoin built on the Ethereum blockchain. The token is the creation of MakerDAO which is a decentralized autonomous organization (DAO) an initiative founded by Rune Christensen in 2014.

The sole aim of the establishment of this DAO was to launch a stablecoin in which anyone can participate. DAI is backed by collateral which is in the form of other cryptocurrencies. Each unit of DAI in circulation is pegged to a particular amount of Ethereum.

DAI is different from other stablecoin for this matter. Usually, stablecoins are pegged to fiat currencies but DAI is backed by other cryptocurrencies.

However, the price change in cryptocurrency does not affect the price of DAI because it is not directly pegged to the crypto, but rather to the collateral backing it. 

Closing Thoughts

What you just went through is the list of the best stable coins out there in the crypt market. The first largest stablecoin in the market is USDT and the second largest is USDC. Typically, the stablecoins are pegged to a fiat currency. However, it can also be pegged to a certain collateral of other cryptos.

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