On March 6, according to the latest report released by Bloomberg Intelligence, the total amount of Stablecoins backed by fiat currencies in circulation has reached $141 billion, a four-fold increase from 2021.
The main drivers of this growth are people’s desire to seek higher yield returns in DeFi and to seek risk hedging in bear markets, which in turn has propelled Stablecoin to play the role of DeFi gold.
In addition, algorithmic Stablecoins, such as UST issued by the Terra protocol, will develop rapidly in 2021, with the market value soaring to US$10.7 billion, an increase of 5,323%; and StablecoinDAI based on the encrypted mortgage model has increased by 791%. 17% of the entire market.
Among all fiat-backed stablecoins, USD Stablecoin is the fastest growing, although Tether’s market share has already begun to decline.