Cryptocurrencies were created with a vision to provide everyone in the world with financial freedom and independence from centralized monetary system. We are gradually moving towards the goal however, there is still perhaps quite a long way to go before we can actually materialize the vison. One of the reasons that is inhibiting the adoption of cryptocurrencies in our day to day life is the volatility of the value of crpytocurrencies. Mass adoption is not possible with such volatility. For everyday usage, these assets need to be more stable in terms of its value. No merchant would agree to accept cryptocurrency if its values change a lot. Thus, Stablecoin cryptocurrencies came into existence.
Stablecoin cryptocurrencies are a new type of cryptocurrency whose prices are stable as opposed to the volatility of other cryptocurrencies like Bitcoin and Ethereum. These cryptocurrencies are pegged to real-world currencies such as USD, EUR, etc. We have outlined a few top stablecoins currently available in the market as well as their contenders below.
Disclaimer: The purpose of this list is not to pick the ” best ” cryptocurrency. The fundamental purpose of this list is to encourage community engagement and intellectual debate among the supporters of different cryptocurrency projects. By bringing supporters of different projects together, we hope to unravel the actual value and sentiment of each project via civilized debates. p.s. Nothing in this article should be treated as financial advice.
This is a stablecoin cryptocurrency that closely mimics the Euro value. This token is fiat-collateralized and its value is equivalent to the value of 1 EUR. This helps bring out all the advantages of the blockchain in the form of a stable cryptocurrency. The whole network is extremely stable and open for anyone to view. Thus, gaining the trust of people. Stasis can be used by people during times of high volatility in order to not lose too much of their funds. By introducing this into an exchange, it attracts a lot of investors such as institutional investors who look at investing in stable cryptocurrencies. Thus, it offers a solution for everyone. The current blockchain balance of Stasis is around 12 million Euros.
- Ticker Symbol: EURS
- Token type: EIP20
- Website: Stasis
BitUSD is a smart coin that runs on the bitShares network. This is, by far, one of the most reliable stablecoin out there with the potential of expanding exponentially. Unlike the other coins on this list, BitUSD is a smart contract. BitUSD is a crypto-collateral asset. Whenever a user wants to own a certain amount of BitUSD, he/she needs to deposit twice as much on the bitshares network. These funds are locked out in a smart contract and the user receives the requested amount of bitUSD.
The value of one bitUSD is pegged to that of an American dollar. In order to get back the bitShares deposited in the contract, the user needs to return the bitUSD. By making the user deposit the amount, the network is free from any kind of fraud or manipulation.
Additionally, it also keeps the value of bitUSD extremely stable. Since this is just a smart contract, the same can be done to mimic other fiat currencies such as Euro, Chinese Yuan, etc. and create bitEUR and bitCNY respectively.
- Ticker Symbol: BITUSD
- Token type: Bitshares Blockchain
- Website: BitUSD
As the name suggests, TrueUSD is a cryptocurrency that is adhered to the value of real-life U.S. Dollar. It is a token that is maintained by some of the people who had worked for Google, etc. before and is built upon the TrustToken Platform. The team behind this project also plans to tokenize other real-world assets such as YEN, EUR, etc. to form the respective tokens in the near future. The current market value of TrueUSD at the time of writing is around $73 million.
- Ticker Symbol: TUSD
- Token type: ERC20
- Website: TrueUSD
Update: The Stablecoin has failed to maintain its peg , currently trading at $0.1 at the time of writing. The team seems to have abandoned the project.
This is yet another stable coin cryptocurrency that has the value of 1 USD. Unlike any most stablecoins, Nubits consists of two different assets: shares and the token itself. The Nu shares represent the ownership of the network.
These shares are staked and are used to verify all the transactions made on the network. Due to the proof of stake consensus, the amount of energy required to verify a transaction is also very low and fast at the same time. Thus, using it for day to day activities seem to be achievable.
On the surface, Havven looks like another stablecoin cryptocurrency. However, the entire structure of this project is unique and innovative. It is a crypto-collateralized token. The platform actually consists of two different assets, Havven and Nomin. Havven is the collateralized cryptocurrency, whereas, Nomin mimics the value of 1 USD.
Every user who owns Havven is entitled to receive a certain amount of Nomin. This is the fee paid by the users who transact using Nomin. As this cryptocurrency mimics the value of 1 USD, you can store your cryptocurrencies in the form of Havven during times of extreme volatility.
MakerDAO proposed their own stablecoin in 2017 called DAI. This is completely different from how USDT or TUSD work. Unlike the above two cryptocurrencies that adhere to USD, DAI is a cryptocurrency-collateralized stablecoin. Instead of being pegged to USD, it is pegged to Ethereum. The way DAI works is extremely complex to understand and thus, has invited a lot of criticism. Currently, Dai has a market cap of 5.2 million US dollars.
This is by far the most famous, as well as the most controversial stablecoin out there right now. Tether is yet another stablecoin that mimics the value of USD. It is also an ERC20 token that is fully fiat-collateralized. Bitfinex, one of the most famous cryptocurrency exchanges, is behind this particular project.
The controversy surrounding this coin is that they are not completely transparent. It was rumored that Bitfinex used USDT to manipulate the prices to its advantage. There is no proper auditing mechanism in place, which is worrying. Nevertheless, it is the most popular stablecoin cryptocurrency with a market cap of a whopping 2.76 billion dollars.