Stablecoins are a very exciting addition to cryptocurrency, although there are some concerns too. As the overall supply on Ethereum dwindles slightly, the battle lines need to be redrawn. USDC Remains the most popular pegged asset on this network, yet the native stablecoin – DAI – isn’t in the top three.
USDC Reigns Supreme On Ethereum
No one will deny Ethereum remains the go-to ecosystem and platform for building applications, protocols, and products. Several hundred projects reside on this network today and continue to make their mark on the broader crypto and blockchain industry. However, the network is losing a bit of ground on the stablecoin front.
To be more specific, there are nearly a dozen stablecoins on Ethereum today. It is a magnificent feat, confirming how much appeal this network has. However, the overall supply has dwindled in recent weeks, partially thanks to the implosion of UST. Although that is a stablecoin native to Terra, its demise has sent shockwaves throughout the broader industry.
Moreover, one has to wonder what it will take for newer stablecoin projects to succeed. Gaining initial traction is never an issue, but generating long-term demand for a new pegged asset is different. The current landscape belongs to the world’s USDCs, USDTs, and BUSDs. These are the three top stablecoins on Ethereum based on their circulating supply. DAI, the native stablecoin of Ethereum, is in fourth place, representing 5.54% of the market.
Even though Tether’s USDT is the largest stablecoin by market cap, Ethereum is not its primary network. That may have to do with Ethereum’s high fees and slower transactions over other networks. TRON has seen a strong influx of funds lately, although UST is accessible through over ten blockchains today. Its current supply on Ethereum is just below 37 billion, putting it well behind USDC at over 45.4 billion.
What About Other Pegged Currencies?
As mentioned before, Ethereum is home to various stablecoins today. Other contenders include Magic Internet Money (MIM), FRAX, PAX, TUSD, and UST. It is remarkable to see how little success TUSD has had despite launching around the same time as USD Coin (USDC). Despite being an early mover project in the pegged currencies space, it has been overtaken by every project that came after, including BUSD.
It seems unlikely anything major will happen to these rankings over the coming months. Investors remain wary of stablecoins, even if they offer a solid option during these volatile market conditions. However, most of the traders and speculators will flock to established currencies, including USDC, USDT, and BUSD. Everything else is of less interest and will likely remain so for a while to come.
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