The increasing volatility of the crypto market is driving the growth of stablecoins.

Technology has impacted almost all of our daily activities, including finances. Every day, more and more people are opting for digital modes of payment. This is one of the major factors contributing to the growth of investments in cryptocurrencies. New investors mostly prefer stablecoins, as they minimize the market volatility. These crypto-assets are mostly pegged to the value of fiat money. Over the years, stablecoins have increasingly brewed up a storm in the crypto space. Recently, more and more assets have been used for backing up stablecoins. So, in this article, we have gathered a list of 10 stablecoins that have been gaining traction and should be watched out for 2022.

Tether

Market cap: US$73.829 billion

Tether is one of the first stablecoins that has gained a lot of popularity because of its US$1 value. Due to the cryptos' dramatic volatile behavior, several lose investors lose interest in the market. Stablecoins like tether minimize this volatility. Tether was created to remain at US$1, with US1 in reserves for each tether released. The coin describes itself as a platform designed to facilitate the use of fiat currencies virtually.

Binance USD 

Market cap: US$13.051 billion

Binance launched its stablecoin in 2019, which relatively makes it a newcomer in the crypto space. BUSD was offered as an attractive bid to its new users looking to get into the crypto world safely and securely. Binance USD has pegged itself to the US dollar which enhances its stability. BUSD is one of the biggest cryptocurrency exchanges which will continue to rise in 2022.

True USD

Market cap: US$1.209 billion

True USD was launched in 2018 and is a 100% dollar-backed stablecoin in the market. It is transparent, reliable, and many consider it perfect to use as a hedge against market volatility. The token features a ratio of 1:1 against the dollar. Furthermore, its creators do not participate in the transfer and have no access to it.

USD Coin

Market cap: US$34.423 billion

USD coin anchors its value to the dollar and operates on various blockchains like the algorand, ethereum, and Solana, to name a few. It works on CENTRE technology, which appeared as a joint effort by Coinbase and Circle. Additionally, it is a crypto-backed stablecoin. Its fund reserves remain in the FDIC-insured US banks.

Pax Dollar

Market cap: US$9.45 million

Pax dollar, previously known as Paxos Standard was a dollar-backed stablecoin operating on the ethereum blockchain. Experts believe that it is one of the best fiat collateralized tokens in terms of eliminating cross-border transaction fees. Wall Street regulators widely accept this token and consider it a reliable crypto asset. It also aids in improving the traditional financial industry.

TerraKRW

Market cap: US$36 million

The underlying Terra protocol that runs TerraKRW is a tried-and-true network in the stablecoin space. Terra uses its LUNA cryptocurrency token to keep its stablecoins balanced using an interesting system. Out of all the different currencies, Terra uses the Korean Won. This is partly because the Terra company was founded in South Korea, thereby knowing how to cater to its local audience.

Digix Gold

Market cap: US$3.41 million

Digix gold is a stablecoin backed by physical gold. Individual tokens are responsible for creating a DGX token to preserve the identity of the gold bullion attached to it. It is managed through a smart contract involved in the creation of the token. Any DGX owner can cash out their tokens in the form of physical gold bars according to the specified value.

Dai

Market cap: US$6.481 billion

Dai is an ethereum-based stablecoin. Its price is pegged to the US dollar and is collateralized by a mix of other cryptocurrencies. Its issuance and development are managed by the maker protocol and the makerDAO decentralized autonomous organization.

Goldcoin

Market cap: US$5 million

It is another stablecoin backed by gold and runs on the ethereum blockchain. It enables the investors to buy and keep the asset using cryptocurrency. Since its creation, several investors and programmers who believe in promoting economic freedom have gotten involved in its development.

Reserve Rights

Market cap: US$4.63 million

Reserve right is a dual-token stablecoin platform. The coin aims to create a censorship-resistant stablecoin and a decentralized fiat gateway network. The crypto is backed by a basket of assets managed by smart contracts.