The year 2022 was a roller coaster ride for us cryptocurrency World. And for the past year, stablecoins have been the focus of the community as they are seen as central elements of the global ecosystem of digital assets. It’s that important stablecoins and this is why every trader and investor takes crucial steps in choosing the right stablecoin.
As the new year begins, you must be wondering which stablecoins are worth mentioning this year. Here are the top three decentralized Stablecoins to watch out for in 2023.
DAI is an experienced decentralized stablecoin the ETH and is used by the Maker Protocol (MKR) managed. It is also soft-pegged to the USD by backing a group of cryptocurrencies in smart contracts on minted DAIs. Since its launch in 2017, it has become a massively adopted one DeFi-Protocol in the ecosystem.
Despite the crisis in the crypto market DAI has remained stable and has given more confidence to its users and businesses. However, the shocking collapse of Terra impacted stablecoins, including DAI. During the Terra Crisis, the market capitalization by DAI from her all-time high from $10 billion to $6 billion.
MakerDAO even has its flagship 1% return or even DAO-Dubbed Savings Rate, relaunched, but seems like it hasn’t gained enough momentum to change the air. So if you’re thinking about putting your money into DAI, you’d better think twice.
At the moment DAI prize stands at $0.999777 with a trading volume of $93.72M in the last 24 hours.
Frax is an open-source on-chain protocol and the first stablecoin partially backed by collateral and an algorithm. Their goal is to provide decentralized, highly scalable algorithmic funds instead of fixed supply crypto assets Bitcoin (BTC).
Frax Finance is named after the “fractional algorithmic” stability mechanism because it depends on the market pricing of the FRAX stablecoin. For example, when FRAX trades above $1, the protocol decreases the collateral ratio. The protocol increases the collateral ratio when FRAX trades below $1.
Lately, Frax Finance announced it is coming to BNB Chaina mainstream EVM compatible Blockchain. This would bring a safer method of bridging tokens to look forward to. The issuance will be activated for FRAX-based pools on the BNB chain from January 5th.
FRAX price today it is $0.995402 with a 24-hour trading volume of $6.38 million.
USDD from Tron
Another stablecoin to watch out for this year is the USDD, an algorithmic crypto-collateralized stablecoin from the Tron DAO ecosystem. As of late December 2022, USDD is 2x overcollateralized and has been promoted as a blockchain-agnostic stablecoin that works on the upside TRX, ETHBNB Chain, and other networks. Its 1:1 ratio to the USD is guaranteed by the PSM (Peg Stability Module).
For now, Tron is ranked 14th in crypto-verse and boasts a very strong market cap. One of its goals is to build a free global digital content entertainment system with distributed storage technology using a blockchain-based protocol and using a proof-of-stake consensus algorithm. This means the more tokens a user trades, the more they need to validate transactions and earn rewards.
However, Tron’s USDD is unraveling, with more funds being deployed from the Tron Foundation to stop it. On the bright side, the TRX coin is in a consolidating trend and we will soon see another uptrend in its price.
Tron’s price stands at $0.055347 with a 24-hour trading volume of $133.6M.
Source: Crypto News Deutsch