The stablecoin backed by many companies such as Circle Internet Financial Ltd, Coinbase, Goldman Sachs and more gives the impression to be the most preferred digital asset amongst numerous stablecoins that are pegged with USD.
Close to $127.4 million USD Coins have been circulated following its September debut, according to Etherscan. The crypto data tracker also shows that Paxos Standard issued $108 million while high profile Gemini Dollar barely managed to get $13 million. Notably, the other two stablecoins were also issued in the same month as USD Coins.
The bearish crypto markets have diverted the public’s attention to stablecoins, with over 50 being put out up till now. It is easier for a novice crypto investor to trust a stablecoin over any other crypto as it is pegged in USD as they wait for a bull run in crypto markets.
The advantage USD Coin has over other stablecoins is that it is not tied to only one company. Just being associated with one entity leaves the coin very vulnerable to collapse. Take Tether for an example. It was tied to Noble bank which failed taking Tether down with it. It has now been constantly deviating from the obvious $1 mark. Although even though Tether’s reputation has gone down, it is important to remember that with a market cap of $1.9 billion it is more than all the stablecoins put together.
Centre, a consortium serves as the safety net preventing USD coin from a single point of failure. This, in turn, makes it one of the most native to the crypto world with an almost negligible association with conventional finance. Given unfavorable circumstances, USD Coin is least likely to fail.