2021 has been a great year for the crypto market in general, as a number of digital currencies have seen their value increase. With the end of the year approaching quickly, the market capitalization of the more than 11,000 crypto assets that exist has reached a value of $2.6 trillion. One of the digital assets that seem to have a very strong position in the market are known as stablecoins, which refer to dollar-pegged tokens. The market capitalization of all the stablecoins that exist today has reached 5.84% of the USD value of the crypto economy, making it around $152 billion.
Therefore, it is no wonder that stablecoins are considered a hot topic in the crypto industry because they have seen significant growth in 2021. To put it simply, stablecoin refers to a type of cryptocurrency that uses the value of an external reference, such as the US dollar, or any other fiat currency for that matter. Today, Tether (USDT) is the largest stablecoin in the market in terms of its market capitalization, which has a market cap of around $73.95 billion. In the last month alone, the market capitalization of USDT has increased by 3.9%.
USD coin (USDC) is the second-largest stablecoin in accordance with its market capitalization, which brings it to about $37.6 billion. This means that in the last 30 days, it has increased by almost 15.2%. As mentioned above, the total market capitalization of all stablecoins in existence is $152 billion. Therefore, it is worth noting that the top two stablecoins i.e. USDT and USDC alone command a whopping $111.55 billion of the stablecoin economy or 73.38%. While the market cap of the latter jumped more than the former, it wasn’t the biggest increase seen in the previous month, considering the top ten rankings in the stablecoin market.
There was a 164.1% increase in the value of the stablecoin named terra usd (UST) and there was a 119% increase in the value of frax (FRAX). Other increases included a 56.8% jump in the market cap of magic internet money (MIM), along with a 49% increase in liquidity USD (LUSD). The stablecoin presence is undoubtedly strong and the trading volume was more than 50% of the global trading volume of the crypto economy in the last 24 hours. Bitcoin markets show that 52.63% of all BTC swaps today are represented by a tether. BUSD, the stablecoin that was issued by Binance, commands about 7.05% of the total volume of BTC.
1.75% of the total BTC swaps is captured by the USDC, which is the seventh-largest trading pair with the pioneer cryptocurrency. As far as Ethereum markets are concerned, even they are not very different as 45.11% of today’s ether trading pairs are represented by USDT. 9.60% of all swaps on Friday were commanded by BUSD, whereas 1.68% were commanded by USDC. Whether crypto markets are bullish or bearish, stablecoins like USDC, USDT and BUSD, have been the top trading pairs for both Bitcoin and Ether in 2021, in addition to fiat currencies like USD, EUR and JPY.