How many stablecoins are there?

With cryptocurrencies known for their wild price volatility, stablecoins have emerged as a more stable way to gain exposure to digital assets, but how many stablecoins are there?

Join us in this blog as we explore what exactly stablecoins are, how they work, and the common questions related to them. This guide aims to answer those questions and more by taking a closer look at these emerging digital currencies.

Since 2014, the market has seen dozens of new stablecoin options continually entering, aiming to enhance existing designs through various backing mechanisms or technical implementations.

While initially most stablecoins aimed to maintain their peg to the US dollar, new varieties now also peg to other assets like gold, cryptocurrencies, and even fiat currencies from other nations.

The diversity of designs has led to varying levels of trustworthiness and transparency for stablecoin between different stablecoin projects. There are currently over 100 different stablecoins in circulation, according to data from CoinGecko.

How does stablecoin work?

Stablecoins in the blockchain maintain price stability by being backed, whether fully or partially, by real-world assets. The two main types of stablecoins: fiat-backed and crypto-backed stablecoins.

Fiat-backed stablecoins like EURK hold reserves in traditional currency (usually dollars and euros) that match the supply of stablecoins in circulation.

Crypto-backed options instead rely on collateral in cryptocurrencies to supply stablecoin liquidity. Smart contracts on blockchains like Ethereum manage this collateral, dynamically adjusting supply and maintaining the stablecoin's value.

Users who trust the maintenance of the peg consider transparency into reserve assets important, whether they are fiat- or crypto-backed. Therefore, stablecoins for the crypto ecosystem are necessary.

What is an example of a stablecoin?

EURK is an example of stablecoin. As a euro stablecoin, EURK is a fiat-backed stablecoin that maintains a 1:1 peg with euro currency. It can be seen as the digital version of the euro in the blockchain ecosystem.

It offers various crypto payments, from cross-border payments to e-commerce payments for crypto merchants. You can easily trade stablecoin with EURK to generate profit.

EURK offers a range of benefits including stablecoin liquidity, transparency, reliability, security, and more, all of which can greatly benefit your business and transactions.

Are stablecoins effective?

Stablecoins have grown dramatically in usage and crypto market cap in recent years, showing their increasing effectiveness. As of December 2023, the total stablecoin market cap was $131.4 billion, according to Statista.

Many exchanges now offer crypto trading pairs involving major stablecoins, allowing users to more easily convert between cryptocurrencies and a list of stablecoins with less volatile values, like EURK.

Some financial analysts recommend allocating a portion of one's portfolio to stable digital assets as a store of value, leading more individuals and institutions to invest in stablecoin.

Their stability and usability are attractive for purposes like payments, trading, and lending in decentralized finance (DeFi) protocols. Data from CoinGecko shows the majority of stablecoin transaction volume occurs on Ethereum.

The transparency and ease of stablecoins are empowering innovation in areas from crypto payments to lending that simply aren't practical with non-stable cryptocurrencies or traditional bank accounts alone.

What are the most popular stablecoins?

EURK is in the top 5 stablecoins that you can trust. These five big stablecoins command over 95% of the total $130 billion stablecoin market. As one of the most popular stablecoins, EURK offers a reliable stablecoin option globally.

You can easily buy EURK on secure crypto exchanges Coinstore and Bitay, or from our other trusted partners Speedy, The Guardian Bank, The Kingdom Bank, and Reisbank. You can transfer EURK, sell EURK, or buy goods and services. The choice is yours after your purchase.

What is the oldest stablecoin?

Tether (USDT) was first launched in 2014 and remains the oldest and largest stablecoin. USDT was really the pioneer in this new cryptocurrency category, focused on price stability. In the early years, it faced challenges around transparency in its dollar reserves backing each USDT coin.

However, as the oldest stablecoin, it went on to achieve the biggest crypto market capitalization due to its widespread listing across major crypto exchanges.

Now in its tenth year, Tether remains a bellwether for the stablecoin sector despite ongoing controversy and regulatory scrutiny over its backing.

Which is the safest stablecoin?

When it comes to safety as a primary concern, analysts generally consider options like EURK to be among the safest stablecoins currently available.

EURK maintains banking partnerships and routine attestations of its euro reserves to bolster confidence. EURK holds multiple reserves in trusted bank accounts and pegs its value to the euro, offering stability.

Is there a euro stablecoin?

Yes, there is now a stablecoin option available directly pegged to the euro: the euro stablecoin EURK. EURK holds reserves in euros within regulated bank accounts in Switzerland and the Dominican Republic.

This backing and 1:1 euro peg make it ideal for those seeking a cash-backed euro digital currency. EURK aims to provide the same key stablecoin benefits of speed, security, and programmability currently only available in dollar-based stablecoins to markets.

Its fully collateralized model helps assure that the peg will remain stable. For people transacting in euros, EURK offers a transparent and reliable digitized equivalent to physical banknotes and coins as a euro stablecoin.

Why would anyone invest in a stablecoin?

Here are the main reasons why an investor may want to invest in stablecoins:

Price stability

Unlike highly volatile cryptocurrencies, stablecoins aim to maintain a steady value relative to fiat currencies like the dollar. This makes them suitable for hedging purposes or as a cash alternative.

Interest-earning potential

Many decentralized finance protocols and centralized exchanges offer cryptocurrency interest rates considerably above traditional savings accounts for depositing fiat-backed stablecoins.

Improving access to crypto markets

Placing fiat money funds in a stablecoin provides an easy bridge to participate in crypto lending, exchanges, or other digital opportunities without exposure to price swings.

Low-volatility stores of value

Stablecoins can preserve purchasing power in a way that traditional currencies sometimes struggle with due to factors like inflation.

For investors seeking these benefits, fully-reserved options like the euro stablecoin EURK can provide exposure to growing digital economies with the inherent stability of fiat currencies.

Why would I use a stablecoin?

Some reasons why individuals and businesses may opt to utilize stablecoins include:

Convenient payments

Stablecoins enable fast, borderless digital payments both within crypto ecosystems and integrated with traditional finance via debit cards or other tools.

Yield earning

Saving money in stablecoins deposited to lending protocols or crypto exchanges pays interest much higher than traditional banks at a low risk.

Price stability

Businesses may prefer receiving payment in stablecoin rather than more volatile cryptocurrencies to better manage currency risk on their books.

Arbitrage

Taking advantage of short-term price differences between exchanges is easier and faces less settlement risk when using a stable medium of exchange like stablecoins.

Accessibility

Stablecoins have become far more usable than other types of cryptocurrencies via integrated debit cards, exchanges, payment platforms, and merchant solutions.

Programmability

Stablecoins enable the use of digital money for self-executing smart contracts on blockchains, such as decentralized lending or prediction markets. So for both investment and spending purposes, stablecoins solve the key deficiencies of national currencies and cryptocurrencies.

What is the most reliable stablecoin to invest in?

For maximum investor protection, transparency, and assurances of maintaining pegs, one of the most reliable stablecoins today appears to be EURK.

EURK holds reserves, fully backing crypto tokens with real cash in regulated custodial accounts. The reserves consist of euros located in stable legal jurisdictions like Switzerland and the Dominican Republic. It ensures reliability and provides confidence that the peg to EUR will remain uncompromised.

In this way, EURK is one of the safest stablecoins to invest in. Not only does it offer safety and stability, but it also provides quick and easy transaction solutions. Become a partner now and explore the advantages EURK offers for you and your business!