The volatility of the crypto market is one of the most significant issues restricting the industry’s growth and mass adoption. While mainstream cryptocurrencies such as Bitcoin and Ether are more prone to pump and dump action, stablecoins, and payment tokens such as USDR, Tether has shown resistance to these manipulations.
Most stablecoins are pegged to physical assets, which helps them retain their price during market fluctuations and reassures investors. Let’s take a quick look at some of the most promising crypto projects helping stabilize the economy.
Tether (USDT)
Tether is a P2P blockchain-based, an open-source cryptocurrency pegged to the US Dollar. The stablecoin operates on an algorithm that helps to keep the price of a token always at $1 despite the market fluctuations. This ability of Tether to stabilize during high volatility has made the token quite popular among investors. Moreover, Tether’s very few risk elements add to its appeal.
USDReserve (USDR)
USDR is a payment token that combines best historical practices with the latest technology to create a transaction system that can withstand the high demand of the present economy. USDR is resistant to volatility due to the gold reserves acquired from Brothers International GMBH, which helps keep the price of USDR tokens always equal to $1 physical gold. Moreover, to ensure safety and security, USDR is compliant with all Swiss laws.
True USD (TUSD)
True USD is the first regulated stablecoin to be backed by the US Dollar. The stablecoin is known for its simplicity, transparency, and reliability as it does not rely on any special algorithm. However, without using any specialized algorithm, TUSD has become popular as one of the best staking stablecoins because of its backing by the US Dollar.
Binance USD (BUSD)
Binance is a popular crypto trading platform that also offers BSC, one of the fastest and most secure blockchain networks. Binance also has a stablecoin pegged to the US dollar and powered by the fast and secured transactions of BSC. BUSD can also be used as a payment method in the global crypto space as it is approved and regulated by the New York State Department of Financial Services.
Paxos Standard (PAX)
PAX is one of the most popular stablecoin that offers and integrates an advanced level of US Dollar stability with blockchain technology. Paxos Standard is known for its efficient and reliable returns, making it a good investment opportunity for traders. Moreover, as Paxos Trust Company issues PAX, users do not have to worry about safety as the organization is regularly audited and regulated.
In the highly volatile crypto space, cryptocurrencies backed and supported by physical assets and reserves create a high degree of reassurance for investors. These tokens are easier to understand and relatable as they are supported by fiat assets that people are confident about.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
