8 Top Stablecoins in 2022

We all remember that first investment in cryptocurrency, challenging wasn’t it? The sudden surge and the downfall. Though every investor wants to take the benefit of high cryptocurrency returns, not every investor is keen to invest in something that is extremely volatile and keeps fluctuating.

 

(Read Further: Digital Currency and Cryptocurrency: Types and Benefits)

 

Enter stablecoins the less volatile low cost and stable cryptocurrencies. Stablecoins won the trust of many investors with less fluctuations and more stability. It focused on building the user's trust in cryptocurrencies. Presently the stablecoin circulating supply is 23,886,807 (24 million approximately). 

 

You might be interested in learning the popular stablecoins; the ones that can guarantee assured returns without being heavy on your pocket; but first let’s understand the meaning of stablecoins. 

 

 

Stablecoins

 

Stablecoins are a type of cryptocurrencies that are less volatile and remain stable. Stablecoins are a way to bridge the gap between fiat currencies and cryptocurrencies. They are backed by some real assets which helps in controlling extreme fluctuations in terms of price.

 

In the world of Decentralized Finance and the NFT world, stablecoins is a new concept which is quickly rising to fame. A stable source of investment is what they offer, stablecoins are backed commodities (gold, precious metals, real estate), backed by fiat (US dollars, Euro, pound sterling) and are even backed by other cryptocurrencies (ethereum, bitcoin). 

 

(Read Further: Advantages of Blockchain in Real Estate Sector)

 

Discover more on Stablecoins via our blog: Stablecoins Explained: Types, Examples and Advantages. 

 

Fact Check: You can earn interest by stablecoin lending and staking. Average stablecoin interest rates vary from 8 to 9%.

 

If you are looking for a safe way to invest stablecoins are your best bet. Let’s take a look at the top 8 stablecoins that can be the perfect addition to your diverse investment portfolio. 

 

 

8 Top Stablecoins for Investment

 

 

1. Tether (USDT):- Tether is a stablecoin that can be used for conversion of cash into digital currency. This stablecoin is built on open blockchain technology and quickly caught public attention post its launch in July 2014. 

 

Tether is a secure stablecoin that is controlled by Bitfinex. It is linked to fiat currency and hence offers a robust framework to its investors. It is tied to the US dollar for maintaining a stability in its price. 

 

Tether’s market capitalization is $73,917,154,637 USD (that comes to whooping 73 billion US dollars , its circulating supply is  73,859,061,439 USDT coins. Moonpay, Paxful, Kraken are some cryptocurrency exchanges where Tether can be purchased from.

 

Backed By:- Tether USDT is backed by US dollars. Its ratio is 1:1. 

 

Interest Rate:- Tether USDT’s maximum interest can go upto 12.3% APY

 

Market Price:- As Tether is a stablecoin and it is pegged to the US dollar its market price is fixed at 1 US dollar (as on 11 November, 2021, 5:44 p.m.)

 

(Related Blog: Centralized and Decentralized Cryptocurrency Exchanges)

 

 

2. True USD (TUSD) :- True USD is the first regulated stablecoin that is backed by the US dollars. True USD was launched in January 2018. True USD follows a 1:1 ratio, it  can be used for earning interest via stablecoin’s staking, mining, and holding. 

 

True USD is available on cryptocurrency platforms like Binance, Mandala Exchange and Huobi Global. 

 

True USD’s market capitalization is $1,202,550,953 USD (that comes to whooping 120 million), and its circulating supply is 1,202,314,463 TUSD. True USD is the second most traded stablecoin which is gaining immense popularity in the cryptocurrency realm. 

 

Backed by:- True USD is fully backed by the US dollar True USD follows a 1:1 ratio.

 

Interest Rate:- True USD’s maximum interest rate can go upto 12.3% APY. 

 

Market Price:- As True USD USD is a stablecoin and it is pegged to the US dollar its market price is fixed at 1 US dollar i.e. 1 True USD will be equivalent to 1 US dollar. 

 

 

3. Pax Dollar  (USDP) (Previously known as Paxos Standard):- Pax Dollar, is a popular stablecoin that is climbing the cryptocurrency ladder. The stablecoin Pax Dollar is pegged to the value of US dollars. It was launched in 2018. 

 

Pax tokens are issued on the Ethereum blockchain. Binance, Digifinex, Bittrex are some cryptocurrency platforms where Pax Dollar can be purchased from. 

 

Pax Dollar’s circulating supply is 945,642,940  USDP; its market capitalization comes to $945,746,263. 

 

Backed By:- Pax Dollar is fully backed by the US dollar, Pax Dollar follows a 1:1 ratio.

 

Interest Rate:- Pax Dollar’s maximum interest rate can go upto 13.5% APY. 

 

Market Price:- Pax Dollar being a stablecoin is pegged to the US dollar, its market price is fixed at 1 US dollar. 1 Pax Dollar is equivalent to 1 US dollar. 

 

 

4. Binance USD (BUSD) :-Cryptocurrency exchanges Binance and Paxos came together to launch Binance. Binance is a US dollar backed stablecoin, launched on 5 September, 2019 this stablecoin quickly rose to fame in 2021. It will be regulated by the New York State Department of Financial Services. 

 

Binance can be used to send money across the globe. Its tokens are issued as ERC- 20 (ERC-20 is Ethereum’s standard protocol for ethereum based smart contracts). 

 

Binance has a circulating supply of 12,742,488,912 BUSD coins, its market capitalization is $12,741,661,155 BUSD. Binance can be purchased from cryptocurrency platform CoinTiger, ZT, IndoEx and Mandala Exchange. 

 

Backed By:- Binance USD  is backed by US dollar it follows a 1:1 ratio.

 

Interest Rate:- Binance USD’s maximum interest can go upto 13.65%. 

 

Market Price:- Binance USD is pegged to the US dollar, its market price is fixed at 1 US dollar which means 1 Binance USD is equivalent to 1 US dollar. 

 

 

5. Pax Gold (PAXG) :- Pax Gold is a stablecoin that is pegged to physical gold.  Pax Gold is built on the Ethereum blockchain. It can be traded anywhere in the world. It is built on the ERC-20 token and can be redeemed any time for fiat currencies and physical gold. 

 

Individual Pax tokens are backed by a small fraction of Good Delivery gold bars, the gold bar following the standard of the London Bullion Market Association. You can purchase Pax Gold token from Binance, BitZ, and Kraken. 

 

Pax Gold has a circulating supply of 173,620 PAXG coins, with market capitalization of $324,976,162 USD. Pax Gold can be redeemed any time, at the standard prices of gold. 

 

Backed By:- Pax Gold is backed by physical gold. 

 

Interest Rate:- Pax Gold’s maximum interest can go upto 8.2% APY.

 

Market Price:- Pax Gold is pegged to the physical gold its market price is dependent upon the value of physical gold an increase/ decrease in the gold’s price will directly impact the price of Pax Gold. Pax Gold’s Market price  is 1871.19 US dollars(as on 15 November, 2021). 

 

Watch this video to learn more about Paxos Gold. 

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You might want to take a look at most Stable Cryptocurrencies. 

 

6. Tether Gold (XAUT):-  Tether Gold is a stablecoin that is backed by physical gold. TG Commodities Limited have launched this gold backed stablecoin. It is available as an ERC- 20 token on the ethereum blockchain. 

 

Holding a tether gold token means owning a fine ounce of physical gold on any specific gold bar. Individual tokens of Tether gold will have details like unique serial number, purity and weight. At any point of time the stablecoin holders can request for redeeming their tokens, the token will be converted to physical gold.

 

You can purchase Tether god token from cryptocurrency exchanges like Celsius Network, BTSE, Bitfinex, and FTX. 

 

Backed By:- Tether Gold is backed by physical gold.

 

Interest Rate:- Tether Gold’s maximum interest can go upto 5.5% APY. 

 

Market Price:- Tether gold is pegged to the physical gold. Its market price is dependent upon the value of physical gold; an increase/ decrease in the gold’s price will directly impact the price of Tether Gold. Tether Gold’s market price is 1872.71 US dollars (as on 15 November, 2021). 

 

You might want to learn about Blockchain Interoperability, check out the blog here 

 

 

7. Perth Mint Gold Token (PMGT) :- Perth Mint Gold token is a stablecoin that is backed by gold. This stablecoin was launched in October, 2018 every single unit of Perth Mint Gold token represents 1 fine try ounce of physical gold, that is stored in Perth Mint’s central grade wallets. 

 

This stablecoin is built by Australian Fintech startup Trovio. It is built at par with the Australian gold standards. The physical gold on this stablecoin is government guaranteed. The token holders can redeem their gold token for physical gold. 

 

Perth Coin’s circulating supply is 945.82740000 PMGT, with a market capitalization of $1,779,421 USD, this stablecoin will climb the cryptocurrency charts in future. 

 

Backed By:- Perth Mint Gold Token is backed by physical gold. 

 

Interest Rate:- Perth Mint’s interest rates range between 5-6% APY. 

 

Market Price:- Perth Mint Gold Token is pegged to physical gold, its  market price is dependent upon the value of gold an increase/ decrease in the gold’s price will directly impact the price of Perth Mint Gold. Perth Mint Gold’s market price is 1878.87 US dollars (as on 15 November, 2021)

 

You might want to know about Semi Fungible Cryptocurrency token. 

 

Last Note

 

“Stablecoins are game changers they bring fiat currencies to the blockchain”.

Choosing the right stablecoin for investment will be solely based on the investor’s choices; for long term investments the gold backed stablecoins are the appropriate choice, for earning short term lucrative returns investing in collateral based cryptocurrency is the right choice. 

 

(Related Blog: What is the Future of Cryptocurrency?)

 

With a plethora of stablecoins to choose from every investor can try their hands on this digital currency.