Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.
As the DeFi sector keeps growing, so too does the popularity of stablecoins, used to gain high returns from various decentralized lending projects. Stablecoins are also useful for their ability to bridge the gap between fiat currencies and digital assets. Stablecoins started off the year on a high note, as their cumulative transactional volume surpassed the $90 billion mark in a financial quarter for the first time ever. Although Tether (USDT) still holds the lion’s share of the stablecoin market, Dai and USDC indeed saw growth during 2020.
From conception of the first stablecoin in 2012 with the proposal of the Mastercoin project as a way of tying cryptocurrencies to traditional assets to mitigate price volatility, developers have grown accustomed to using the U.S. dollar as a go-to stable asset.
Currently, however, developers are experimenting with other stable assets such as gold, other fiat currencies and even cryptocurrencies. Here is an updated look on the current state of stablecoin adoption as a list of the top performing stablecoins in the market.