{"id":1684,"date":"2022-08-26T19:00:00","date_gmt":"2022-08-26T19:00:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=1684"},"modified":"2025-06-03T14:57:02","modified_gmt":"2025-06-03T14:57:02","slug":"best-stablecoins","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/best-stablecoins\/","title":{"rendered":"Study: The Best Stablecoins Ranked From Most to Least Stable"},"content":{"rendered":"\n

Don’t trash your idle cash like TerraUSD. Here are the top 15 battle-tested stablecoins.<\/strong><\/em><\/p>\n\n\n\n

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High inflation and tight monetary policy have made 2022 a challenging year for stocks, bonds, and cryptocurrencies alike. On the digital asset front, blockchain analytics firm Glassnode considers 2022 to be the most significant crypto bear market in history.<\/p>\n\n\n\n

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In case you thought most everyone prefers cold, hard cash over crypto assets these days, the stablecoin market has risen by more than $14 billion since the November 2021 bull market peak.<\/p>\n<\/blockquote>\n\n\n\n

The bear market has lasted 290 days so far, bottoming -73.3% from the November 2021 all-time high (ATH), and with Bitcoin and Ethereum trading below their previous ATHs for the first time ever.<\/p>\n\n\n\n

During times like these, the demand for stablecoins is higher than ever.<\/p>\n\n\n\n

Stablecoins were developed as low-volatility assets that investors could use to easily trade into and out of highly volatile digital assets. Crypto investors could, for instance, sell their holdings for stablecoins when they detect downtrends and buy back into cryptos at much lower prices before the next bull market starts.<\/p>\n\n\n\n

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The graph above shows how a portfolio consisting of only Bitcoin and Ethereum dipped as low as -78% this year. But by adding the Tether stablecoin to this portfolio, it would have only dipped around -54%.<\/p>\n\n\n\n

At least this was the established practice before the algorithmic stablecoin juggernaut TerraUSD (UST) collapsed and wiped out over $18B in investor value.<\/p>\n\n\n\n

These days investors are wondering: Are stablecoins even stable?<\/strong><\/p>\n\n\n\n

This study uses data on the most popular stablecoin projects from CoinMarketCap (CMC). Of the 102 stablecoins listed on CMC, we eliminated untracked listings and coins that don\u2019t have verified market caps or circulating supplies.<\/p>\n\n\n\n

This left us with 47 different stablecoins, which we\u2019ll rank based on two factors:<\/p>\n\n\n\n

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  1. Volatility over the past six months<\/li>\n\n\n\n
  2. Value in case of an emergency liquidation<\/li>\n<\/ol>\n\n\n\n

    Itching to know where you should park your cash as you wait for this bear market to blow over? Then read on.<\/p>\n\n\n\n

    How to rank the best stablecoins<\/h2>\n\n\n\n

    As of writing this, stablecoins have grown to capture more than $153 billion of the $1.04 trillion total cryptocurrency market cap. And in case you thought most everyone prefers cold, hard cash over crypto assets these days, the stablecoin market has risen by more than $14 billion since the November 2021 bull market peak.<\/p>\n\n\n\n

    As of August 2022, the top 15 stablecoins by market cap on CMC are:<\/p>\n\n\n\n

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    1. Tether<\/li>\n\n\n\n
    2. USD Coin<\/li>\n\n\n\n
    3. Binance USD<\/li>\n\n\n\n
    4. DAI<\/li>\n\n\n\n
    5. True USD<\/li>\n\n\n\n
    6. PAX Dollar<\/li>\n\n\n\n
    7. USDD<\/li>\n\n\n\n
    8. Neutrino USD<\/li>\n\n\n\n
    9. FEI<\/li>\n\n\n\n
    10. Gemini Dollar<\/li>\n\n\n\n
    11. Terra Classic<\/li>\n\n\n\n
    12. sUSD<\/li>\n\n\n\n
    13. FRAX<\/li>\n\n\n\n
    14. LUSD<\/li>\n\n\n\n
    15. HUSD<\/li>\n<\/ol>\n\n\n\n

      But here\u2019s the kicker: data from our study shows that the top-ranked stablecoins aren\u2019t necessarily the most stable. In fact, there are about four stablecoins more stable than Tether (USDT) and USD Coin (USDC).<\/p>\n\n\n\n

      Don\u2019t believe us? Let\u2019s dive into our ranking system. As mentioned above, we ranked 47 stablecoins based on their collateral and volatility.<\/p>\n\n\n\n

      Collateral<\/strong><\/h3>\n\n\n\n

      Stablecoins vary by how they maintain their pegs, and not all stablecoins follow a single protocol. For example, FRAX is a fractional algorithmic stablecoin only partially backed by collateral.<\/p>\n\n\n\n

      Still, you can classify most stablecoins as one of the following:<\/p>\n\n\n\n