751
views

Top Stablecoins to Watch in 2022

Stablecoins are virtual currencies that help minimize crypto market volatility. These crypto-assets are often pegged to the value of fiat money, exchange-traded commodities like gold and silver, or cryptocurrency. These tokens operate on blockchain technology and offer investors more safety than other crypto assets.

Over the years, stablecoins have increasingly brewed up a storm in the crypto space. For instance, most of them chose the US Dollar as the primary asset to peg their value and reach global acceptance.

Nevertheless, not all stablecoins are the same. They come in different sizes and shapes. And, some of them have distinct backing assets, intrinsic values, and many other features. In this article, we look at the top stablecoins of 2022 and their most popular trading platforms.

What Are the Top Stablecoins to Watch in 2022?

In the section below, we will discuss the top contenders in the stablecoins space for 2022.

1. Tether (USDT)

This coin’s name stems from “tethering itself” to the value of the US Dollar. Tether is the most popular stablecoin in the crypto space. Also, it is the first significant token that investors and crypto exchanges adopted.

Tether has the backing of traditional currency, commodities like gold and silver, and cash equivalents. Its smooth integration with cryptocurrency to fiat money platforms has made this stablecoin a favorite among numerous investors.

With a market cap of about $73 billion, this stablecoin is the 5th largest cryptocurrency and has a market price of $1. However, it may sometimes vary between 91 cents to a little above a dollar. The guarantor of this token is the Bank of Hong Kong, with vast user funds. In addition, the Omni Layer Protocol manages the output, demand tracking, and liquidation of this coin.

2. TRUE USD (TUSD)

True USD launched in 2018, and it is the first 100% USD-backed stablecoin in the crypto industry. It is transparent, reliable, and many consider it the best hedge against crypto market volatility. To this end, many experts believe that this asset is the most independent and manageable cryptocurrency in the market.

The token features a ratio of 1:1 against the dollar. In turn, its collateral funds are in third-party storage. Also, the money goes to the trust institution.

Furthermore, its creators do not participate in the transfer and have no access to it. In fact, the release of these funds takes place using smart contracts upon request by the customers.

True USD operates on the TrustToken platform. At the time of writing, it had a market cap of about $1.25 billion with a market price of $0.999940. Also, this token features low transactions costs, high-interest rates on capital balance, and maintains high data transparency.

3. USD Coin (USDC)

USD Coin anchors its value to USD and operates on various blockchains, including Algorand, Ethereum, Solana, and Stellar. It works on CENTRE technology and first appeared as a joint effort by Coinbase and Circle. The coin is famous for its transparent auditing techniques and fast and secure transactions.

Additionally, it is a crypto-backed stablecoin. Its fund reserves remain in FDIC-insured US banks. Also, the New York State Department of Financial Services regulates it to protect customers and other investors.

With a market cap of $34 billion and a market price of $1.00, USDC has a 1:1 ratio with USD. Furthermore, it does not charge users any fees when redeeming or creating these tokens. In turn, they offer an excellent way to trade an asset. This is possible due to its underlying US dollar reserve and its monthly market supply of tokens.

4. Paxos Standard (PAX)

Paxos Standard is a popular fiat-backed stablecoin operating on the Ethereum network. Many experts believe it to be the best fiat collateralized token in terms of eliminating cross-border transaction fees.

A New York-regulated financial institution, Paxos, developed this token and held its USD reserve in 1:1 in Paxos-owned US Banks.

Wall Street regulators widely accept this token and consider it a reliable crypto asset. For instance, it aids in improving the traditional financial industry. It achieves a frictionless global network and generates a virtual asset with more flexibility and speed.

Furthermore, Paxos Standard has a market cap of $945.65 million and holds a market price of $1.00. It has a daily trading volume of $8,262,813.

5. Binance USD

In collaboration with Paxos, Binance launched Binance USD (BUSD) in 2019. This stablecoin is a virtual dollar-backed with a ratio of 1:1 to US dollars. The New York State Department of Financial Services regulates it, and FDIC-insured banks store its reserves.

A reputable audit firm audits it every month to verify the authenticity and compliance of the reserves. In turn, many users prefer it due to its stable and reliable value. Investors can hold BUSD as a hedge against crypto market volatility as well as fiat money devaluations. Lastly, they can also use and trade it in the Defi markets for lending and borrowing.

With a live price of $0.999986 and a market cap of $13 billion, Binance USD has a 24-hour daily trading volume of $7,344,219,311. Currently, this token is ranking as the 18th largest cryptocurrency in the market.

Conclusion – Top Stablecoins to Watch in 2022

Stablecoins are an excellent way to diversify your cryptocurrency investment. They offer a stable means of trading and protect investors and traders from steady crypto market volatility.

Tether live price
Usdt
Tether
$1,001
price
0.15606%
price change
BUY NOW

The market already contains numerous stablecoins. Also, many more are in development. So, it can be overwhelming to choose the best stablecoin to add to your investment portfolio. However, regardless of your choice, make sure to do your due diligence before opening your crypto wallet.

Stay up to date with our latest articles

More posts

Are Gold-Backed Tokens Worth Investing During Crypto Bear Market?

The crypto market is under the complete control of bears, investors taking short positions to profit from declining prices. In this unstable environment, new capitalists are fearful or skeptical when funding projects. Instead, they turn to more reliable assets that would not wipe out their portfolios when or if they flop. Gold-backed tokens represent a category of assets ready to provide portfolio stability and allow investors to overcome the bear market without too many losses. On the contrary, gold-pegged tokens…

The Buyback and Burn Practice Explained

In a constantly evolving and growing crypto market, it is difficult for investors to know where to put their money. One popular investment strategy in the crypto space is buying tokens of teams that conduct a buyback and burn program.  This guide will explore what a buyback and burn practice is, how it works, and its benefits and risks. What Is a Crypto Buyback and Burn Practice A crypto buyback and burn practice happens when a company buys back its…

Should You Sell Off Your Crypto Assets During a Bear Market?

Selling your crypto assets during a bear market can be a hard choice. On the one hand, selling off your assets may seem logical during a down market. On the other hand, you may be worried about missing out on potential profits if the market rebounds.  This guide will illustrate the benefits and risks of selling off your crypto assets during a bear market. While you should always do your own research, we will also share some tips for doing…

Why Do Some Crypto Projects Issue More than One Token?

In recent years, the popularity of cryptocurrency has exploded. As a result, more and more people are looking to invest in crypto projects. However, not all projects are equal, and it can be challenging to determine which ones are worth investing in. This guide aims to help investors make informed decisions about which crypto projects to invest in. It will explain multi-token models and why they have become so popular among crypto projects.  The guide will also outline the benefits…

How to Spot a Crypto Project with Great Tokenomics?

In the cryptocurrency world, there are a lot of projects with amazing tokenomics. However, it can be challenging to determine which projects are worth investing in.  This guide will help you spot a project with great tokenomics. In this way, you can make a great decision about where to invest your money.  Before analyzing the technical components of tokenomics, there are other red flags you should be able to spot. Our guide will begin with this premise and then move…

A Guide to the Signs that a Crypto Project is About to Fail

Cryptocurrencies are digital assets and a payment system invented by Satoshi Nakamoto. They use cryptography to secure their transactions and control new units' creation. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin, the first cryptocurrency, appeared in 2009. With the rise in popularity of cryptocurrencies, there has also been an increase in crypto projects that end up failing.  This guide will explore the signs that a crypto project will fail. By understanding these signs, you can…

An Easy Guide to Initial Gaming Offerings (IGO)

Initial Gaming Offerings, or IGOs, have been gaining in popularity as of late. This guide will explore the ins and outs of IGO investing. The aim of this post is to help you make informed decisions about this investment opportunity.  We'll cover everything from what they are and how they work to the benefits and risks associated with them. At the end of the guide, you will find it easier to assess IGOs on the market. What Are IGOs, and…

Initial Metaverse Offerings (IMO) – A Beginner’s Guide

Initial Metaverse Offerings (IMO) allow businesses to raise money by issuing tokens on the blockchain. IMO offer investors a chance to get in on the ground floor of exciting new projects. Through an IMO, you may provide businesses with the capital they need to get started.  This guide will explore what IMO are, how they work, and what you need to know before investing in one. What Are Initial Metaverse Offerings (IMO)? Initial Metaverse Offerings are a way for blockchain…

Top 5 Crypto Portfolio Trackers To Use in 2022

An active cryptocurrency trader cannot do without the support of a crypto portfolio tracker. Not if they want to be successful at trading or investing. A crypto portfolio tracker is an app enabling you to monitor the amount and value of your crypto assets across all wallets, exchanges, platforms, and blockchain networks in real-time. It allows you to track historic transactions, live crypto prices, gains, and losses. Above all, it prevents you from mismanaging your portfolio while getting the best…

Five Gold-Backed Crypto to Consider in the Current Inflationary Economy

Many traders are optimistic about the blockchain's development potential and recognize that volatility is inevitable with new technology. Some are asking how to invest in digital assets while maintaining some degree of stability. A relevant part of investors frequently mentions stablecoins as a valid investment alternative. Anchoring the value of crypto to a fiat currency can undoubtedly sound appealing. However, fiat money depreciates as inflation increases, making stablecoins less valuable. In this particular context, the crypto market is offering a…