USDC Stablecoin Depegging Causes Concern Among Crypto Advocates, 5 Other Stablecoins Slip Below Parity
Crypto advocates have been left scratching their heads recently following news that USDC, a popular stablecoin, has been depegging from the US dollar. This has caused concern around the entire hype of stablecoins and the five other stablecoins slipping below their intended “parity” with the dollar.
What’s the Deal With USDC?
USDC was introduced to provide a transparent, digitally native form of currency that would maintain a fixed price relative to the dollar. It was designed to ensure that those involved in the crypto world could always access a reliable form of currency to transact with.
However, it has been revealed that USDC’s price has been highly volatile, and had started to slip below the 1:1 ratio relative to the dollar. This had been a cause for concern among crypto advocates and traders, who had expected the token to remain a reliable store of value.
Is the Dream of Stablecoins Over?
So what does this mean for the dream of stablecoins? Are we to go back to trusting traditional financial systems?
The short answer is no! There are still plenty of viable and trustworthy stablecoins that are available in the market. Here are five of the most prominent and reliable options:
- Tether – The original and oldest stablecoin, Tether remains the leader in the space and has held up it’s “parity” with the US Dollar thanks to its renowned reputation.
- DAI – This is a decentralized stablecoin based on the Ethereum network. It is designed to provide a safe and reliable option for those looking to transact without volatility issues.
- TrueUSD – This US dollar-backed stablecoin has been increasing in popularity in recent times and is provably backed by US dollars.
- GUSD – This is the exclusive stablecoin of the Gemini exchange, it is fully backed and supported by the exchange.
- USDT – The most widely used stablecoin on the market. This is the only major USD-backed stablecoin that’s supported by most major exchanges.
Final Thoughts
It’s good to see that the world of stablecoins can still offer reliable options despite the hiccup experienced by USDC. We can only hope that this serves as a reminder of the volatility that can exist within the crypto markets, and to take extra caution when deciding on which stablecoin to use!
But for now, it’s time to grab some popcorn, sit back and enjoy the show!
