The number of stablecoins on the market increased nearly 10-fold between January 2020 and January 2021, according to data provided by The Block Research.
In addition, monthly transaction volumes also increased, from around $23.5B in January 2020 to $384B in January this year.
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To date, most stablecoins live on the blockchain of the second-largest cryptocurrency on the market, while the remaining coins prefer the Tron and Omni network, which rank second and third, respectively.
It must be noted that USDC, Circle's stablecoin, one of the most popular cryptocurrencies at the moment, is also hosted on the Ethereum blockchain.
Stablecoins are cryptos that are linked to the price of an underlying asset, which allows their price to not suffer the same volatility as common cryptocurrencies such as Bitcoin or Ethereum. For instance, the price of Tether, the most popular stablecoin, is pegged to the price of the US dollar at a 1:1 ratio.