Stablecoins are Growing Exponentially in Supply with USDT USDC BUSD and Lot More

People from across the world are beginning to choose stable coins as the major kind of money.  For those who have not used stable coins before, find it difficult to understand the utility.  Skeptics are left wondering how the supply and backing of stable coins was able to exceed the reserves of major banks. No denying that the growth of USDT has been stunning.  Stable coins have evolved to be the “newest form of capital.”

The major drivers of the growth of stable coins are:  1. Dollarization.  2.  Capital Controls.  3.  Treasury Management.  4.  DeFi Growth.

It is obvious that the growth of stable coins is not showing any signs of slowing down. Traditional financial experts are left wondering why people are making use of stable coins.  The issuance of stable coins is increasing.  And, there is a lot of demand for them.  The benefits of stable coins are very clear to those who make use of it.

Despite the adoption, the global economy continuing to demand more dollars is going to continue.  Several countries are trying to obstruct the flow of capital.  Companies are beginning to make use of stable coins to manage their operations and they are including it in their balance sheets.  The usage of stable coins in Defi is improving parabolically.

The presence of strong drivers triggering the growth of stable coin is set to propel the expansion of stable coin supplies in the next decade.

The list of widely used stable coins are:  Tether (USDT); Dai (DAI); Binance USD (BUSD); USD Coin (USDC); TrueUSD (TUSD); TerraUSD (UST); and Digix Gold Token (DGX).

Tether (USDT) is the top stable coin followed by USD Coin (USDC). In the list of Top Stable Coin in terms of market capitalization are:  TerraUSD (UST); Binnace USD (BUSD); Dai (DAI); TrueUSD (TUSD); Pax Dollar (USDP); Neutrino USD (USDN); Fei USD (FEI); Tribe (TRIBE); Frax (FRAX); Liquidity USD (LUSD); HUSD; and Gemini Dollar (GUSD).

The list of stable coins further extends to:  USDX (Kava) USDX; Reserve Rights (RSR); XSGD; Stasis Euro (EURS); sUSD; Origin Dollar OUSD; Celo  Dollar CUSD; Qcash QC; Vai; Steem Dollars SBD; DigixDAO (DGD); mStable USD MUSD; Reserve (RSV); USDK; TerraKRW (KRT); Rupiah Token (IDRT); bitCNY; Empty Set Dollar (ESD); Xaurum (XAUR); EOSDT (EOSDT); CryptoFranc (XCHF); Digix Gold Token (DGX); Basis Cash (BAC); Stably USD (USDS); NuBits (USNBT); Italian Lira (ITL); Magic Internet Money (MIM); Angle Protocol (AGEUR); Defi Dollar (DUSD) and many more.

While all these are happening, the Hong Kong Watch Dog, in its CBDC paper, has warned that stable coins might undermine HKD.

The US Banking Watchdog has required that stable coins need to set a common standard.

The UK treasury is all set to regulate some stable coins.

The Lightning Labs have raised $70M to bring stable coins to Bitcoin.

Algorithmic stable coins are very hot right now and wide variants of stable coins are expected to emerge.