Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the coin, relative to some stable asset or basket of assets. A stablecoin is known to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities like gold for instance.
According to a crypto market data from Skew, USDC is currently the second-largest USD-backed stablecoin on the market. Launched in 2018, USDC currently has a market capitalization of over $452 million, followed by PAX with $191 million and TUSD with a $140 million.
Notably, the USD Coin (USDC) is fully collateralized and is backed by Ethereum blockchain. Reportedly, the stablecoin is currently at number 28 in CoinMarketCap while Tether (USDT) is leading the stablecoins market with a $4.6 billion market cap.
Binance’s own stablecoin, the NYDFS-approved BUSD, on the other hand, seems to be struggling with adoption with a market cap of only $74 million.
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