Top 5 Stablecoins By Market Cap And How To Use Them

Key Points

1. Tether’s USDT is the largest stablecoin with a market cap exceeding $155 billion, pegged 1-to-1 with the U.S. dollar and backed by reserves held by Cantor Fitzgerald.

2. USD Coin (USDC) is the second-largest stablecoin with a market cap over $61.5 billion, fully backed by cash and short-term U.S. Treasury bonds, and widely used in DeFi and cross-border payments.

3. Ethena (USDe) is a hybrid stablecoin with a market cap over $5 billion, using delta hedging to reduce price swings and offering yield-bearing options like sUSDe with average returns around 18% in 2024.

4. MakerDAO’s DAI is a decentralized stablecoin with a market cap of $4.8 billion, managed by MakerDAO token holders and used extensively in DeFi for borrowing, lending, and trading.

5. World Liberty Financial USD (USD1) is a newer stablecoin with a market cap of $2.1 billion, pegged 1:1 to the U.S. dollar and backed by short-term U.S. Treasury securities, managed by BitGo.