Stablecoin Demand in 2021 Skyrockets, Fiat-Pegged Token Economy Nears $100 Billion – Markets and Prices Bitcoin News

While most cryptocurrency markets are down today in value, dollar-pegged stablecoins have seen significant demand during the last 24 hours. Currently, the entire market valuation of all the stablecoins in existence is roughly $96 billion.

The Rise of Fiat-Pegged Stablecoins

Crypto assets like bitcoin (BTC) and ethereum (ETH) can be volatile and this has caused demand for stablecoins in recent years. Since July 2017, the stablecoin market has swelled considerably but after April 2020, it skyrocketed. One of the main use cases for stablecoins is so people can hedge their funds when crypto prices become extremely volatile.

Stablecoin Demand in 2021 Skyrockets, Fiat-Pegged Token Economy Nears $100 Billion
Top ten stablecoins by market capitalization on May 13, 2021.

Since the recent market downturn, demand for stablecoins increased dramatically. As most people know, tether (USDT) is by far the largest stablecoin in existence and today it commands a $58 billion market valuation. Tether also captures the most volume, in terms of all the trade volume across the entire crypto economy.

Besides the colossal tether market capitalization, the second-largest stablecoin market valuation in the crypto economy is held by usd coin (USDC). The stablecoin USDC commands a $15 billion market capitalization and has seen $5.4 billion in global trade volume during the course of the last day.

Stablecoin Issued by Binance Gains Traction, Other Crypto-Based Fiat Tokens Swell in Volume and Capitalization

The stablecoin issued by Binance called BUSD or binance usd, has a lower market cap than USDC, and is the third-largest stablecoin by overall valuation. Although, BUSD beats USDC in global trade volume with $14.3 billion in swaps during the last 24 hours.

$14.3 billion in global trades is quite large, but tether (USDT) has seen $265 billion in 24 hours as far as reported volume, according to Coingecko’s “Top Stablecoins by Market Capitalization” aggregator. Stats from messari.io show a similar metric for tether’s reported…

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