Before its crash a week ago, Terra’s UST was one of the biggest dollar-pegged stablecoins in the market. The coin was finally de-pegged and has since lost almost 90% of its value against the dollar. So, it is obvious that crypto investors are looking for alternatives, and here is why.
USD linked stablecoins are crucial for most crypto-related transactions.
Stablecoins also help investors to reduce exposure to other volatile crypto assets.
USD-linked stablecoins are the main drivers of DeFi.
With this in mind, if you are looking for better alternatives to UST, we have a list of three coins below to check out.
When it comes to dollar-linked stablecoins, nothing compares to USDT. It is the biggest dollar-pegged coin by market cap and one of the more trusted options.
Data Source: TradingView
There were some fears after the UST collapse that Tether could lose its peg. But those fears have now been quashed. USDT appears as stable as ever. While the coin is not 100% safe, it is a far better option compared to most of the dollar-pegged coins in crypto right now.
USD Coin (USDC)
USD Coin (USDC) has an overall market cap of around $53 billion. After Tether, it is the second-largest dollar-pegged stablecoin. USDC has shown incredible stability over the last few weeks.
Even as Tether and other stablecoins appeared to shake slightly in the wake of the UST collapse, USDC remained largely unchanged. It’s therefore a safe option for investors keen on using dollar-pegged coins. Besides, the circulation of USDC is backed by real currencies held in reserve and additional US treasury bonds.
Pax Dollar (USDP)
Pax Dollar (USDP) may not be as big as Tether or USD Coin, but it is a very decent stablecoin. Its market cap is slightly below $1 billion, but that’s not a bad thing. Besides, USDP is fully collateralized. This gives it a bit of extra stability.