The market capitalization of crypto-currencies backed by fiat currencies has continued to grow in 2021. The market cap of the Binance USD (BUSD), for example, has increased almost 10-fold since the beginning of the year. A significant development that now places it at the doorstep of the top 10 cryptocurrencies.
Rising numbers for stablecoins
According to information from Bitcoin Exchange Guide, Binance USD (BUSD) is currently ranked 11th in the cryptocurrency ranking in terms of market capitalization. The latter actually stands at $11 billion at the time of writing this article, compared to only $986 million at the beginning of 2021.
The BUSD has been steadily rising since its launch, although the stablecoin market remains dominated for the time being by Tether’s USDT, the third largest cryptocurrency with a market cap of $62.5 billion, and USDC, in seventh place with $26.6 billion.
Naturally, the market capitalization of stablecoins has also been on the rise and has now surpassed $110 billion. It has grown 3x since the beginning of the year and now represents just under 8% of the total market cap of the cryptocurrency markets. The BUSD takes 10% of the market share of stablecoins.
Growth overshadows MNBCs
The current growth of stablecoins contrasts with other crypto markets in the red since Bitcoin’s crash last May. Indeed, they are increasingly being used by institutions as collateral in the futures markets. Ultimately, the bitcoin price collapse worked in their favor.
In addition, Ethereum (ETH) remains the dominant blockchain in the stablecoin space. Indeed, more than 66% of the supply of stablecoins is issued on the network.
However, this growth is threatened in the medium and long term by aggressive regulations against stablecoins, which can be seen as serious competitors to central bank digital currencies (CBDs).
The dynamism of the stablecoin market is also illustrated by the new projects that are emerging in the cryptosphere. This is particularly the case with the Euro-backed RAP, which stands out in a market where most stablecoins are instead backed by the dollar.
