As of Wednesday, October 13, 2021, the market cap of all existing stablecoins is approximately $ 134 billion, or 5.60% of the entire $ 2.4 trillion crypto economy. As centralized stablecoin projects dominate the dollar-indexed token pack, a large number of decentralized stablecoins have moved to these centralized competitors. Algorithmic or defiant stablecoins have accumulated billions of dollars in market caps over the past year.
As Tether and USD Coin eclipse the market, Algorithmic Defi Stablecoins still shine
Attached (USDT) is one of the oldest and largest stablecoins by market cap today, while the second largest stablecoins valuation belongs to the usd coin (USDC). Coingecko’s market cap stablecoin metrics data indicates that as of October 13, there were $ 134 billion in stablecoin assets. A large majority of these funds belong to the USD tie and coin as USDT has a market capitalization of approximately $ 70.9 billion and the USDC commands $ 33.3 billion.
Despite controversial discussions regarding the guarantees of some of these large stablecoin markets, they are the market leaders when it comes to dollar-indexed tokens. The two USDT and USDC combined represent 77.61% of the stable $ 134 billion economy that exists today. However, decentralized competitors who back their own stablecoins in a multitude of different ways have started to see their market capitalization increase.
For example, the DAI stablecoin has been the most popular decentralized stablecoin and the asset is backed by oversizing through the Makerdao project. DAI stablecoin also commands the fourth largest valuation in the market just below Binance’s BUSD stablecoin. DAI’s market cap on October 13 is $ 6.7 billion and the crypto asset registered $ 343 million in 24-hour trading volume on Wednesday. DAI is considered an algorithmic stablecoin linked to the value of the US dollar.
Terra USD, Magic Internet Money, Liquidity USD, FEI rise below Makerdao’s Algorithmic Stablecoin
Terra USD (UST) is also an algorithmic stablecoin and its market cap is lower than DAI at $ 2.7 billion today. UST is followed by another decentralized stablecoin called Magic Internet Money (MIM) which holds a market valuation of $ 1.5 billion on Wednesday. The most active trading platform today for trading MIM tokens is the decentralized exchange (dex) Trader Joe. Similar to other decentralized stablecoin projects, Magic Internet Money is issued by users of the abracadabra.money lending protocol.
The ninth largest USD liquidity-held stablecoin cap (LUSD) is around $ 658 million today and Uniswap V3 is the most active exchange for stablecoin. The USD is issued by the Liquity Protocol which is another decentralized finance lending (challenge) protocol. There is also the stablecoin challenge project called Fei which issues a stablecoin called FEI, like the algorithmic stablecoin DAI. FEI’s market cap on Wednesday is $ 543 million and it commands $ 79 million in 24-hour trading volume.
The aforementioned decentralized or algorithmic stablecoins that are not backed by a company providing audits and are produced by the crypto community as a whole, represent 8.95% of the current stablecoins market cap. This is only $ 12 billion of the $ 134 billion in stablecoins in circulation today. For now and for some time, it is very likely that centralized competitors like the USDC and USDT will not be moved. However, many of these algorithmic or challenge-style coins became the main competitors in the market and made their mark without corporate backing and little controversy.
What do you think of the stable coin market today and the 8.95% challenge and algorithmic stable coins that have been advancing in the crypto economy lately? Let us know what you think of this topic in the comments section below.
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