Earlier than its crash every week in the past, Terra’s UST was one of many greatest dollar-pegged stablecoins available in the market. The coin was lastly de-pegged and has since misplaced virtually 90% of its worth in opposition to the greenback. So, it’s apparent that crypto buyers are searching for alternate options, and right here is why.
USD linked stablecoins are essential for many crypto-related transactions.
Stablecoins additionally assist buyers to cut back publicity to different unstable crypto belongings.
USD-linked stablecoins are the primary drivers of DeFi.
With this in thoughts, if you’re searching for higher alternate options to UST, we’ve got a listing of three cash beneath to take a look at.
In terms of dollar-linked stablecoins, nothing compares to USDT. It’s the greatest dollar-pegged coin by market cap and one of many extra trusted choices.
Information Supply: TradingView
There have been some fears after the UST collapse that Tether might lose its peg. However these fears have now been quashed. USDT seems as secure as ever. Whereas the coin just isn’t 100% protected, it’s a much better possibility in comparison with a lot of the dollar-pegged cash in crypto proper now.
USD Coin (USDC)
USD Coin (USDC) has an general market cap of round $53 billion. After Tether, it’s the second-largest dollar-pegged stablecoin. USDC has proven unbelievable stability over the previous couple of weeks.
Whilst Tether and different stablecoins appeared to shake barely within the wake of the UST collapse, USDC remained largely unchanged. It’s due to this fact a protected possibility for buyers eager on utilizing dollar-pegged cash. Moreover, the circulation of USDC is backed by actual currencies held in reserve and extra US treasury bonds.
Pax Greenback (USDP)
Pax Greenback (USDP) will not be as huge as Tether or USD Coin, however it’s a very first rate stablecoin. Its market cap is barely beneath $1 billion, however that’s not a foul factor. Moreover, USDP is totally collateralized. This offers it a bit of additional stability.