Introduction

Traditional cryptocurrencies such as Bitcoin, Dogecoin and ethereum are infamous for their wildly swinging price. Contrary to that, there are cryptocurrencies that are stable and maintain almost the same price over a very long period.

A stablecoin is a cryptocurrency pegged to a reserve asset like a fiat currency, commodity, or other cryptocurrencies, however there are alternatives to it. It is an ideal entry point for users looking to dip into the cryptocurrency market without getting exposed to the wild market swings.

Stablecoins can be pegged to reserve currency, backed by other cryptocurrency or be algorithmically manipulated by a contract to maintain the price

Read more at: https://economictimes.indiatimes.com/markets/cryptocurrency/stablecoins-what-they-are-and-why-you-should-consider-investing-in-them/articleshow/89769727.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Stablecoins on algorand

There are three main stablecoins on the algorand chain. They are USDC, UST and STBL. Let us look at how much market share each have to get a vague understanding.

Note : In this analysis, we consider swaps where a stablecoin was used for swapping. That is, the asset sent from the user is a stablecoin

We can see that USDC has a clear majority with STBL and UST coming second and third respectively.

Now let us look at the trend over the month of March 2022. We shall first look at the number of swaps made using each stable coin and then look at the volume of transactions.

Again, we see that USDC is among the crowd favorite and used for majority of the transactions. After USDC, STBL is the next favorite and then comes UST. One of the interesting observation is that all the three behave in every similar fashion. The peaks and valleys occurs almost at the same time.

We shall now look at the volume swapped using each stablecoin. To keep things clear, let us define what volume in our analysis is. Volume in our analysis is the total amount in USD that was swapped using stablecoin. Now that we have defined what volume is , let us look at how the volume swapped changed everyday on the month of March 2022.

After seeing that USDC was the majority in number of swaps, one could anticipate that the trend would be same for volume. So, we can see that the coins display similar behavior when volume is considered.

USDC is the leader, while STBL follows and UST is a distant third.

Below is a cool representation of the trend.