Introduction The Decentralized Finance (DeFi) Revolution is taking over traditional finance (TradFi) and centralized exchanges (CEX), with billions in...
While 2020 has been hailed as the year of stablecoins, the majority of the attention in the market is still dominated by a selective handful of players. These include giants like USDT and DAI, who have been around for what seems like eons in the blockchain space. Despite the fact that both Tether and MakerDAO have entrenched themselves in the market, having pulled the carriage through the mud, there are many aspiring (and rapidly growing) stablecoins who are quickly catching up. As a whole, one should view the stablecoin market as a rapidly growing sector, generating positive externalities for those who encompass it. This means that the stablecoins were taking a look at today aren’t necessarily direct competitors with the market leaders, but rather are adding further fuel into an already raging bonfire.
1. TerraKRW (KRT)
Market Cap as of writing: ~$80,000,000
24h trading volume as of writing: ~$130,000
The underlying Terra protocol which powers TerraKRW is itself an old guard of the stablecoin space, even with their recent facelift this year of adding the LUNA token to represent the mining power within Terra’s network. Out of all the different national currencies that Terra protocols are pegged to, the Korean Won seems to be the highest in demand as seen with a market cap of around 80 million USD despite only being offered as recently as September 2020.
2. JUST (JST)
Market Cap as of writing: ~$59,000,000
24h trading volume as of writing: ~$47,000,000
Similar to KRT, JUST launched its JST token only recently in May 2020. Operating in a dual token system, JUST has a stablecoin named USDJ that is pegged to the USD in a 1:1 ratio — allowing the JST token to fluctuate based on market demand as the “gas” token used for implementing mostly financial transactions. Another thing that makes JUST interesting is the fact that they run on the TRON blockchain, making them one of the very few stablecoins who chose to move away from Ethereum or build their own blockchain such as Terra.
3. Binance USD (BUSD)
Market Cap as of writing: ~$800,000,000
24h trading volume as of writing: ~$367,000,000
Okay, so technically Binance launched their stablecoin in December of 2019. But seeing that Covid-19 is causing us to erase much of 2020, we thought it is just and fitting to include the largest market entrant in recent memories. Binance arguably boasts the position as the biggest and most reputable cryptocurrency exchange on the market, making them incredibly attractive to new users who want to enter the crypto world but are hesitant due to the fluctuations. As we’ve previously written before, one of the key benefits of stablecoins is their usability in allowing you to buy and sell digital currencies without having to constantly worry about price fluctuations — something Binance is betting big on.
In conclusion, what these sudden rises display is an insatiable appetite from the market for new stablecoins with real market implications. One of the reasons that the Binance stablecoin gained such immediate attraction was through its functionality, usability and usability. For an organization that provides stablecoins as a service such as Stably, these case studies serve as an exciting trend for new market entrants seeking premium solutions. With Stably, any business is able to collateralize their assets and create a tailored stablecoin to fit their needs! Who knows, maybe we will be right about your token in the future!
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