The Stablecoins are incredible popular choice among various crypto buyers since they provide stability linked to the fiat currency. On the other hand, we come across various stablecoins that are being tethered and pegged to US dollar. Have you even wonder that why various stablecoins are peg with US dollars? The crypto and stablecoins dominated by USD which constitute for almost 98 percent of stablecoin volume as per the reports. We take the stock of facts & conditions which make US dollar to be much dominant option over various fiat currencies.
Crypto Currency and its popularity!
Stablecoins are basically the crypto currency where market value gets pegged few of the external asset such as US dollar or different fiat currencies. It attains the price stability through collateralization with the fiat currencies. However, the market of stablecoin has grown from almost $5.7 billion to $155.6 billion as per the report.
Also 5 most renowned & high- market cap which has US dollar-backed are mainly Tether, BUSD, DAI, Terra USD and USDC.
Reasons for the USD being most famous fiat currency peg with stablecoins:
– The USD most-preferred currency through Central banks & institutions that are around world for the purpose of trading.
– As per the report by Federal Reserve in the year 2021, USD dominated has the official reserves of currency. As the transactions of foreign-exchange volume the debt instruments, deposits of cross-border with cross-border loans.
– Index of the currencies in finance industry offers US dollar with the rating of almost 75, the second-most with the used currency through rating of 25.
– Such trends have various manifested in market quite strongly and also making USD obvious with the lucrative options for stablecoins.
– Measures of Stringent regulatory of fiat currencies.