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In blockchain finance, knowledge of growth and its timing is important. For many people, market growth was triggered by the accumulation of funds in Bitcoin ETFs.
But few paid attention to another signal – the rise of stablecoins. As 2024 blurs the lines between traditional currencies and tokens, Fiat wealth flows into the blockchain world and need a reliable bridge. The fact that the supply of stablecoins has increased recently is a sign of the health of the market. Their presence in a wallet will be useful at every stage of working with crypto. This includes purchasing in the chosen currency and taking out a loan to earn money from the stake and withdraw the winnings.
And so investors rack their brains to find the best stablecoins to invest in. Their issuers are becoming influential players in the blockchain space, like these three.
USDC (USDC-USD)
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When leading market players work together, truly remarkable projects emerge. This is exactly what happened in the case of Circle and Coinbase, which launched USDC (USDC-USD). The coin has become a benchmark of reliability for other stablecoins, always maintaining a 1:1 ratio to the US dollar.
The token began its history in 2018 on ether (ETH-USD) Blockchain and eventually expanded its presence to networks like Algorand (ALGO USD) And Solana (SOL USD). The unexpected danger came from the seemingly reliable Silicon Valley Bank (SVB). In 2023, the token’s value briefly fell to $0.87. SVB held Circle’s reserves of approx 3 billion dollars and fell victim to instability in the US banking system. Observers often view this event in a negative light, overlooking the fact that the project withstood the pressure and has since demonstrated its resilience.
A current system and organizational control (SOC) 2 Type 2 audit confirmed the reliability of Circle’s security measures. Another sign of trust in the project is the commitment of important market participants. Binance has converted all assets of its Secure Asset Fund for Users (SAFU) in USDC. The project ranks 6th in the cryptocurrency market capitalization rating with an indicator of 33 billion dollars. This level is 1.6 Times lower than the peak in 2022 when the token broke through the 55 billion dollars to mark. Investors continue to view it as one of the best stablecoins to invest in as it has seen transactions worth every day in the last week $4.5-$11 Billion.
First Digital USD (FDUSD-USD)
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The young and ambitious stablecoin has been conquering the hearts of advanced crypto users since 2023. First digital USD (FDUSD-USD) goes beyond the standard notions of digital assets pegged to the US dollar. It is the first choice when it comes to insurance and financial contracts without intermediaries.
First Digital Trust Ltd. is the custodian of the project reserves and monitors the relationship with the US dollar. Cash and US Treasury bills (T Bills) and overnight repurchase transactions (Repos), replenish the reserve, thereby increasing users’ confidence in the stability of the exchange rate. An independent audit is conducted every month to reconfirm the FDUSD reserve.
In 2024, FDUSD is one of the best stablecoins to invest in as First Digital’s vision envisions further breakthrough growth, especially thanks to the new stablecoin regulatory framework. The token works on 2 networks: ether (ETH-USD) And Binance Chain (BNB-USD). It has paved the way due to its convenience and technological capabilities 20 million dollars to a market cap of $1 billion in 5 months (from June listing to December 2023). Listings on the leading crypto exchanges and successes in diversification have also contributed to the token’s exponential growth. This month, the project’s capitalization rose to over $4.4 billion, putting FDUSD among the top 30 cryptocurrencies.
Dai (DAI-USD)
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Since 2019, Dai (DAI USD) has enabled users to hedge risks and get the most out of decentralized finance. The Maker Foundation built this project so that security always exceeds the number of DAI tokens in circulation. The company has transferred control of the stablecoin to MakerDAO. The community is managed by a decentralized autonomous organization (DAO), which protects the project from the concentration of power in the hands of a limited circle.
Not all stablecoins have reserves exclusively in fiat currencies. DAI is a prime example as the token uses cryptocurrencies such as Ethereum and Wrapped Bitcoin (WBTC-USD). Despite its long history, dating back to 2014, the project is one of the most modern and technologically advanced on the market. Thanks to the mechanisms of the stability fee and the DAI savings rate (DSR), users can create DAI by depositing collateral into a smart contract (vault). If the value of the collateral falls below a set level, the volatility problem is resolved by liquidating the vault and redeeming the DAI.
The last few months have brought DAI victories in the form of integrations with DeFi protocols and platforms. The token is already one of the best stablecoins to invest in and it continues to improve so that it continues to be in the spotlight of decentralized finance projects. Improving the stability mechanism and updating the basic infrastructure of smart contracts have increased the efficiency of DAI and helped the project gain a foothold in the world 3 Position among stablecoins by market capitalization.
At the time of publication, Julia Magas did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.