There are many different types of stablecoins that have emerged in recent years, ranging from algorithmic stablecoins to centralized stablecoins. To compare the top ten stablecoins by market capitalization and share my thoughts on their future development trends, they are:
-
USDT (Tether): Launched in 2014, USDT was the first stablecoin to be issued and is available in both OMNI and ERC-20 protocols. However, USDT has been subject to controversy and concerns over its stability and the possibility of being under-collateralized.
-
USDC (USD Coin): Issued jointly by Circle and Coinbase, USDC is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
DAI: Issued by the decentralized finance platform MakerDAO, DAI is backed by ETH and its supply is algorithmically adjusted to maintain its price stability.
-
BUSD: Co-issued by Paxos and Binance, BUSD is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
TUSD (TrueUSD): Issued by TrustToken, TUSD is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
HUSD: Issued by Huobi, HUSD supports the exchange and circulation of multiple mainstream stablecoins, and its asset support is mainly in US dollars.
-
GUSD (Gemini Dollar): Issued by the Gemini cryptocurrency exchange, GUSD is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
PAX (Paxos Standard): Issued by Paxos, PAX is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
USDK: Issued jointly by OKLink and Prime Trust, USDK is an ERC-20 protocol stablecoin that is fully backed by the US dollar.
-
BUSD-BEP20: Co-issued by Paxos and Binance, BUSD-BEP20 is a BEP-20 protocol stablecoin that is fully backed by the US dollar.
Overall, these stablecoins differ in their issuers and asset support methods. USDT has the most controversy, while DAI uses a unique algorithmic method to adjust its supply to maintain price stability. Other stablecoins use asset support to maintain their stability.
Regarding the future development trends of stablecoins, as the cryptocurrency market matures and the use cases for stablecoins expand, stablecoins will become increasingly important. In the future, stablecoins may move from centralization to decentralization, and more stablecoins with unique features may emerge.
