Stablecoins have firmly taken their place in the crypto industry, acting as a constant against which to compare the movement of all other cryptocurrencies, the price of which is constantly changing.
Although the crypto industry seeks to eliminate the need for centralized finance, the fact that cryptocurrencies are equal to the U.S. dollar is necessary to clarify the actual value of assets for users.
That’s why the question of what the best stablecoins to hold comes up every year, and 2024 is no exception.
Today, we will examine a list of top stablecoins that play a key role in crypto.
USDC (Circle)
The USDC is deservedly at the top of this list.
It launched in September 2018 initially on Ethereum under the ERC-20 standard, but is now available on other blockchain networks such as Solana, Tron, expanding to Polygon, and others and aims to provide a reliable 1:1 peg to the U.S. dollar for the entire crypto industry.
The founders and issuers of USDC are Circle and Coinbase, and their joint consortium Centre launched USDC in September 2018 initially on Ethereum under the ERC-20, but scaled it later on blockchain networks such as Solana, Tron, expanding to Polygon and others.
Their goal is clear: to provide a reliable stablecoin pegged 1:1 to the U.S. dollar for the entire crypto industry, and how consistent their movement through this built them a reputation among users and enterprises.
This is one of USDC’s biggest advantages; as one of the most popular stablecoins in the crypto industry, the company behaves very carefully and is not involved in high-profile lawsuits or questionable ventures.
USDC strives to comply with strict regulations and build credibility by doing so, which, for example, could be one reason why it became the first officially adopted stablecoin in the E.U.
All this together makes USDC the best stablecoin to hold if you are looking for an already popular, actively developing, but strict, and reliable solution.
USDT (Tether)
Of course, this list of top stablecoins wouldn’t be complete without USDT.
Tether Limited launched one of the earliest and most popular stablecoins in 2014 on the Bitcoin blockchain using the Omni Layer protocol. However, it is present on all major blockchains, including Ethereum ERC-20, Tron TRC-20, Solana, Algorand, and others.
Its founders and issuers are affiliated with the cryptocurrency exchange Bitfinex. This association has been a controversial chapter in Tether Limited’s history and raised numerous questions about whether it maintains a 1:1 backing for its USDT with real reserves.
The company has been involved in many significant legal disputes, some of which ended unfavorably for Tether and significantly undermined its reputation.
Despite this, USDT remains the most popular stablecoin, integrated into most operations on most platforms. Specific trading pairs are available only with this USDT, and some platforms only accept it to provide certain trading features.
Moreover, Tether Limited is dynamically developing and actively adopting developments in the crypto industry. For example, it is to launch a gold-backed stablecoin, which is one of the frontrunners if the U.S. decides to reserve stablecoins alongside Bitcoin.
If you are actively trading or frequently conducting transactions, especially across different, especially not common platforms in the crypto industry, USDT might be the best stablecoin for you.
BUSD (Binance USD)
The centerpiece of the crypto industry is not only the Binance exchange but also its BUSD stablecoin. They launched it in September 2019, with the company issuer being Paxos and Binance acting as the main partner.
They initially launched it on two blockchain networks: Ethereum, traditionally an ERC-20 standard token, and Binance Smart Chain (BSC), a BEP-20 standard token. This allows BUSD to be used widely and cheaply within the Binance ecosystem.
Despite Binance facing some regulatory complexities, as well as Paxos, they are keen to demonstrate its transparent reserves and strict compliance with regulatory standards, and there is not too much controversy on this topic in the crypto community.
It could be the top stablecoin to hold for active users of the Binance ecosystem, which is very extensive and has many key partners and integrations.
BUSD allows users to participate with Launchpads, receive very favorable steaking conditions, and impressive rewards for use, making this stablecoin not only quite reliable but also beneficial in many situations.
TUSD (TrueUSD)
Also, the fiat-collateralized stablecoin TUSD, released in March 2018 and aiming to provide a transparent and secure 1:1 USD peg, continues to hold a key place.
It was released by TrueUSD, a company of the same name specializing in issuing stablecoin assets, and did so on Ethereum’s ERC-20 blockchain network.
The company distributes its reserves among partner banks, allowing users to directly exchange their TUSD for USD. They are also subject to constant auditing to ensure no single point of failure and business interruption in case of threats and strict compliance with regulatory standards, which TrueUSD constantly insists on.
So, if you are looking for a reliable alternative to the most popular solutions above for various reasons, then TUSD could be your top stablecoin to hold.
DAI (MakerDAO)
The last of the top crypto stablecoins, but not in importance, remains the decentralized stablecoin DAI, which serves as a counterbalance to all previous centralized solutions.
The MakerDAO team released it in December 2017, and it runs on Ethereum ERC-20.
Its key feature is that it has no centralized control and is managed by EVM Smart Contracts.
CDPs, later renamed Vaults, back it, and many cryptocurrencies support its value, with ETH being the central one.
Although it may be fundamentally different from the approach of previous solutions, it accomplishes the same goal: providing a 1:1 stablecoin to USD.
Of course, this involves some risks, as if the volatility of the collateral assets shows itself and with a market crash and liquidation of the collateral, it could shake DAI.
However, MakerDAO claims there are contingency funds for this, and decentralized stablecoin is bound to happen, anyway.
DAI is also taking the lead in integrating into the DeFi ecosystem, which aligns with its original design for its technical foundation.
Without a doubt, if you find it strange that decentralized finance is tied to a centralized reserve currency but still needs some constant value, holding DAI is your top stablecoin to hold.
Conclusion
Stablecoins have firmly carved a niche in the crypto industry, acting as a valuation metric for the rest of the cryptocurrencies whose greater or lesser volatility is inevitable. And the crypto industry offers some worthy alternatives.
Do you need the most popular and universally accepted stablecoin like USDT, the most balanced and credible like USDC, the most convenient and profitable like BUSD, an alternative to the mainstream such as TUSD, or a true decentralization with fixed-value like DAI?
But remember, this is not financial advice. Depending on which key features of stablecoins you prioritize and what goals you pursue from their use, you will not get guarantees, but you may discover some interesting opportunities.
