Tether’s rumors have paved way for other stablecoins [pegged 1:1 with real-world assets] like Circle’s USDC, Paxos’ PAX, and Winklevoss twins’ Gemini [GUSD]. A war among stablecoins has started to take over Tether’s throne if and when it falls.
Gemini, Paxos, and USD Coin have all received the go-sign from the New York Department of Financial Services [NYDFS] before the launch. Post its listing on Coinbase on October 23, USDC’s circulating supply increased by 42% overnight surpassing Paxos by a huge margin.
Paxos is now trading with a circulating supply of 112 million, with 40% of its volume coming from Binance. Bittrex announced its listing of Paxos on October 31 and contributes to a mere 1.13%. Paxos has a very steady growth and mostly organic as compared to Circle’s USDC. Circle has a total circulating supply of 127 million due to huge spikes after listing on Coinbase, while Gemini has a circulating supply of a mere 12 million.
Stablecoins are not thought to be faced with the same volatility like that of regular cryptocurrencies like Bitcoin [BTC], Ethereum [ETH] or XRP etc since they are pegged 1:1 with real word assets like the US dollar or gold. These stablecoins have been gaining a lot of traction in the recent day while other cryptocurrencies are in a sideways market. Exchanges like Huobi, Bitfinex, and OKEx have listed stablecoins like USDC, GUSD, PAX and TrueUSD [TUSD].
As per CoinMarketCap, Paxos has a 24-hour volume of $35 million while USDC has a 24-hour volume of $2 million. GUSD is at a $7.2 million which is greater than USDC’s 24-hour volume. Among the three, GUSD has the highest velocity of money, 59.05%, which is the amount of money exchanged from one exchange to another in a given period of time, while GUSD is at 31.56% and USDC has the lowest, i.e., 1.67%.
While there is a close competition between USDC and PAX in terms of market cap, Tether trumps all the other stablecoins with respect to market cap [$1.7 billion], 24-hour volume [$2.1 billion] and velocity of money [120%].
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