The supply of stablecoins continues to rise despite the slowdown in Bitcoin's rally. The combined supply of the three major stablecoins – Tether USD, USD Coin and Dai – reached $141.42 billion, the highest since May 2022. The total capitalization of stablecoins has reached $155.5 billion, according to The Block.
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As a rule, stablecoins act as a tool for buying cryptocurrencies on the spot market and for trading derivatives.
As of April 2024, USDT is the third largest crypto asset (after Bitcoin and Ethereum) and the number one stablecoin with market capitalization is about $105 billion.
Other popular stablecoins include USDC and DAI, whose capitalization is $32 billion and $4.9 billion, respectively. Stablecoins are often seen as a source of financing for purchases of other tokens and act as “fuel” for rallies in the cryptocurrency market.
What are stablecoins
Cryptocurrency tokens, the rate of which is tied to some asset, for example to the dollar, euro or ounce of gold. Their reserves are backed by real assets – fiat currencies, securities, precious metals, etc. The largest stablecoin by capitalization is Tether USD (USDT), its issuer is Tether Limited.