On Wednesday, October 13, 2021, the market capitalization of all the stablecoins in existence is around $134 billion, which is 5.60% of the entire $2.4 trillion crypto economy. While centralized stablecoin projects dominate the pack of dollar-pegged tokens, a great number of decentralized stablecoins have been moving in on these centralized competitors. Algorithmic or defi-styled stablecoin market caps have accrued billions of dollars this past year.
While Tether and USD Coin Eclipse the Market, Algorithmic Defi Stablecoins Still Shine
Tether (USDT) is one of the oldest and the largest stablecoins by market cap today, while the second-largest stablecoin valuation belongs to usd coin (USDC). Data from Coingecko’s stablecoin-by-market-cap metrics indicates that on October 13, there’s $134 billion in stablecoin assets. A great majority of those funds belong to tether and usd coin as USDT has a market cap of around $70.9 billion and USDC commands $33.3 billion.
Despite controversial discussions concerning the backings of some of these large stablecoin markets, they are the market leaders when it comes to dollar-pegged tokens. Both USDT and USDC combined make up 77.61% of the $134 billion stablecoin economy that exists today. However, decentralized competitors that back their own stablecoins in a myriad of different ways, have started to see their market caps swell.
For instance, the stablecoin DAI has been the most popular decentralized stablecoin and the asset is backed by over-collateralization via the Makerdao project. The stablecoin DAI also commands the fourth-largest market valuation just under Binance’s BUSD stablecoin. DAI’s market cap on October 13, is $6.7 billion and the crypto asset has seen $343 million in 24-hour trade volume on Wednesday. DAI is considered an algorithmic stablecoin that is tied to the value of the U.S. dollar.
