Since the development of blockchain technology, many things have been developed through it. Some of the most common include Non-Fungible Tokens, commonly known as NFTs. These are used in various fields and have had a successful year. The most common thing developed through blockchain technology is cryptocurrency tokens. There are thousands of cryptocurrency tokens developed to serve different roles. The cryptocurrency tokens are categorised according to their uses and development.
The two main categories are normal cryptocurrency and stable cryptocurrency. Normal crypto includes tokens developed to gain value according to how they perform in the market. Some started their life worth cents and are now worth thousands of dollars. These cryptocurrency tokens can gain value annually, as seen in recent years. The most common tokens that lie in this category include Bitcoin and Ethereum. These are the two most expensive cryptocurrency tokens, but they started their existence with a very low value that grew over time.
On the other hand, stablecoins are coins backed by a particular fiat currency. Most of the stablecoins that have been developed have been pegged to the United States Dollar. This means that their value remains at par with the US Dollar. Some of the reasons why this is important include the following:
The first is that since the token’s value remains the same as the dollar at all times, this is the best token for transactions and trading.
People, especially traders who would like to adopt crypto as a means of payment, would prefer this kind of crypto. Since the value remains at $1 always, they will be able to make safe transactions that will not make them lose any money. This happens due to a lack of volatility among stablecoins. As the name suggests, while other coins fluctuate daily, stablecoins remain stable. Some of the most common stablecoins in the market include:
Tether is the most common and best-ranked stablecoin in the market. According to the market, Tether is the most valuable stablecoin that has ever existed in the blockchain, and it is also the fourth most valuable cryptocurrency in the entire market. This shows how much people and organisations trust the coin to perform in the market compared to other coins. Since it was released in 2014, it has led the charge towards a stable crypto that can be used for normal practices. This is the coin with the most potential to be backed by the US government as their preferred cryptocurrency.
The second best stablecoin in the market is the USD Coin. This coin was developed in 2018 as a project between two of cryptocurrency’s biggest names: Circle and Coinbase. Coinbase holds the title of one of the best cryptocurrency platforms in the world, with global connections and users. The two companies united in developing this coin by investing in the Center Consortium to manage the coin.
Another stablecoin offered by the biggest cryptocurrency provider in the world is Binance USD. The Binance USD is one of the most common coins in the Binance exchange platform, the largest crypto exchange globally. The coin has been approved by the New York State Department of Financial Services, thus making a mark in the stablecoin market.