Stablecoins are growing massively: a market overview

Stablecoins are becoming increasingly important. In 2020, both their trading volume and their market capitalization increased significantly – the launch of Diem (formerly: Libra) as one of the most important stablecoins is likely to take place in 2021. But how many stablecoins are there currently? And how are the existing stablecoins secured? Which reference units are used?

This article first appeared in the February issue of Kryptokompass .

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The market for stablecoins has developed rapidly in recent years. Although many stablecoin projects are only temporarily on the market or fail before they are even introduced, the number and variety of stablecoin projects is increasing significantly. In the following figure, all active and planned stablecoins are shown according to their type, i.e. according to off-chain, on-chain, algorithmic and alternative stablecoins.

In our estimation, there are currently (as of August 2020) a total of 194 stablecoins, which are unevenly distributed across the individual categories. Of the 194 stablecoins, around 78 percent have already been issued, while around 22 percent have not yet been issued. 125 stablecoins, i.e. around 64 percent, can be assigned to the off-chain stablecoins. Some initiatives are being planned, although the stablecoins have not yet been issued. The second most common category is on-chain stablecoins with 26 percent (51 stablecoins). Algorithmic and other alternative concepts are represented roughly equally with eleven and seven stablecoins, respectively.

Gold and the US dollar lead the field

In addition to the classification of existing stablecoins, the consideration of the reference units of the stablecoins is also very informative. The following figure shows these for the 194 identified stablecoins.