According to The Block, the worldwide stablecoin market has grown tenfold in the last year, surpassing $100 billion in total market capitalization.

Stablecoins, or crypto assets that mirror the price of fiat currencies, provide users with a standard unit of account to make open blockchain transactions easier. As a result, their role in trading on and between crypto exchanges has grown dramatically, particularly outside of the United States, for a variety of reasons, including reducing the need for access to US bank accounts, providing near-instant settlement, and subjecting transactions to fewer regulatory requirements, among others. In reality, stablecoins have recently outperformed the USD and bitcoin in pair transactions on exchanges worldwide.

Stablecoins, which are frequently created as tokens on the Ethereum blockchain, enable decentralized financing. They own most of the assets in Compound's decentralized lending market, which offers deposit returns far higher than those offered by traditional financial institutions.

As the market capitalization of stable coins grows, competition among issuers appears to be heating up. Tether dominated the early stablecoin era, but newer entrants like USDC, issued by companies like Coinbase and offering a better level of regulatory compliance and integration into the existing financial system, are gaining traction.