Even if you have become part of the cryptocurrency industry a month back, you would have a very good idea about terraUSD (UST). It is one of the algorithm stablecoin that recently ended up crashing.
When trading in cryptocurrencies, you need to have digital assets to trade such as Bitcoin, Dogecoin, Ripple, and many more. However, you cannot withdraw these cryptocurrencies and get cash directly from them.
Instead, you have to convert it to a stablecoin within the cryptocurrency exchanges you are performing trades with. These stablecoins are pegged with USD, which means that their price remains attached to the USD’s price.
However, while the USD has reserves back every single one of its penny, most of the stablecoins don’t. Therefore, a single problem with the algorithm or the system running the stablecoins can lead to a catastrophe.
terraUSD faced the same issue when its algorithmic problem ended up de-pegging it. It means that UST could no longer balance itself versus the USD. Therefore, its price started to diminish and it still hasn’t recovered. Even now, UST stands at a low of $0.06364 and its creators are trying their best to recover its price.
Due to UST, many other stablecoins ended up suffering from the same losses. Despite the losses, there are stablecoins that haven’t faced any dips or downtrends. Provided below are the stablecoins that were not affected by the UST crash at all:
Tether is the largest and the most trusted stablecoin in the entire crypto-verse. Its trading price against the USD is $0.999, and has an overall valuation of $73,189,487,252. The average 24-h trading volume being recorded for USDT is worth $40,802,371,022.
USD Coin (USDC)
USD Coin is the second-largest stablecoin with an overall market valuation of $53,071,650,565. The trading value of the USDC/USD pair is currently worth $1.00. The average 24-h trading volume of USD Coin is worth $3,258,891,721.
Binance USD (BUSD)
Binance USD is the third-largest stablecoin. It has been launched by Binance, the largest cryptocurrency by trading volume. Binance USD’s overall valuation is worth $18,535,997,627. Binance USD’s average trading volume in a 24-h period is worth $5,609,617,184.Binance USD currently has a trading value of $0.9998 versus the USD.
Dai is the fourth-largest stablecoin with an overall valuation that is worth $6,528,359,904. Dai currently has a trading value of $1.00 versus the USD. Its 24-h trading volume is worth $256,301,986.
Frax also has a trading value of $1.00 versus the US Dollar. With a total valuation of $1,421,370,308, Frax ranks as the fifth-largest stablecon. The overall trading volume of Frax in a 24-hour period is worth $22,599,867.
If you haven’t invested in stablecoins and are planning to do it, then you can choose either of the mentioned stablecoins.