The most valuable stable coin tether shows no signs of stopping as it floats in the green zone.
Amid the rise of Bitcoin, most Stablecoins have provided relief to investors who had lost hope.
Other Stablecoins such as DAI and USDC are also trading in the green zone, suggesting a big bull run.
Tether has become the most promising Stablecoin in the crypto currency market. Tether is the third most valuable Stablecoin in the world and has been trading at $1 since September 2020.
In the past, we have seen XRP dominate the market as Stablecoin, but Tether has outperformed it in terms of market capitalization for the second time in less than two weeks. According to CoinMarketCap it has a market capitalization of $8.803 billion.
Despite the rise in USDT/USD, Dai and USDC, the Stablecoins have closed the gap in recent weeks. This is due to the dramatic increase in decentralized finance (DeFi). Many protocols and applications are adopting DeFi, and even Dai and USDC have done the same.
What is a Stablecoin?
Stablecoins are a form of digital asset that provide price stability. They are backed by a reserve balance, and their prices do not fluctuate like crypto-currencies. Digital currencies like BTC and Ethereum are very volatile, and their prices can change in an instant. This is not the same as with a stable coin.
Stable coins such as Dai, Tether and USDC have gained a lot of traction in recent years. Stable coins provide adequate security, privacy and instant processing for people around the world. In addition, they are not volatile and have a stable valuation with a fiat currency like the USD. They are also tied to an asset like gold.
Dai and USDC rise while Tether enters a safe zone
Dai is a stable coin or ERC20 token that runs on DeFi and the Ethereum block chain. The USDC is also a stable coin that is tied to the US dollar. The USDC was introduced in September 2018, but today millions of coins are in circulation around the world.
There are many stable coins around the world, but today the Dai and the USDC have become one of the most widely adopted decentralized digital currencies around the world. They stand out from the crowd, and only the Tither and a few others have more appeal than they have today. Apart from serving as a medium of exchange, the Dai also enables users to take out loans and pay. It can be used to pay for goods and services and is transferable between Ethereum wallets.
The Dai has no governing body, and no one is trusted to keep the currency stable. Their prices are kept in check by an intelligent contract system that they can automatically execute themselves. If there are too many fluctuations from its pegged currency, the dollar, the market would automatically create or burn some of the Dai brands to ensure price stability.