2025 Stablecoins: The top 10 you need to know
Investing in cryptocurrencies is exciting, but volatility can be daunting for newcomers. Enter stablecoins, which are digital assets that offer price stability and serve as a bridge between fiat and crypto. With numerous stablecoins available, it’s essential to choose the right one that aligns with your goals.
This curated top 10 list of stablecoins unveils each digital asset’s unique strengths and role in the ever-evolving decentralised finance (DeFi) landscape. From market giants to innovative newcomers, explore their functionalities and how they can empower your crypto journey.
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The best adoption overall: Tether (USDT)
Tether (USDT), a centralised digital asset under Tether Limited Inc, reigns supreme in the list of top stablecoins. It is pegged to the United States dollar (USD), with its entire supply backed by fiat and crypto reserves. Its primary appeal lies in its ease of conversion from virtual assets to fiat, making it a popular choice for international banking solutions.
With a market cap of over $142 billion and an average trade volume of $51.4 billion every 24 hours, USDT’s liquidity and reliability are unmatched. As currently the most adopted crypto in the market, its role extends beyond simple transactions. It is a key part of DeFi applications, facilitating smooth exchange between crypto and lending/borrowing activities.
The best alternative to USDT: USD Coin (USDC)
USD Coin (USDC) is the top alternative to Tether, functioning as one of the major stablecoins pegged to the United States dollar. Its main appeal is its decentralised network, although it is governed by Circle International Financial Limited (Circle).
As a decentralised crypto, USDC is far more suited for wide adoption across all platforms. It has the potential to grow in Web 3.0 finance given its high $56.5 billion market cap and its $4.92 billion daily trading volume ensures its liquidity. Since it is pegged to the USD, users can trade it in for fiat cash, but transaction speed and fees will vary depending on the exchange choice.
Stablecoin on PayPal: PayPal USD (PYUSD)
PayPal USD (PYUSD) is a new asset in the crypto world. It was launched only in August 2023 but has already found its way among lists of major stablecoins. It has a market cap of $643 million, backed 100% by a United States dollar deposit. Thus, PYUSD can be easily cashable, just as it is adoptable for commerce through PayPal. It secures a daily trading volume of $18.3 million, which is expected to increase as adoption grows further for PYUSD.
PYUSD stands out for its seamless integration with a familiar platform. Backed by PayPal, which is one of the biggest electronic payment service providers with a global reach, PYUSD leverages their existing user base and established ecosystem. Even so, its wide-reaching platform benefits PYUSD users as it provides high liquidity and convenience.
Traditionally reliable: Dai (DAI)
Dai (DAI) was one of the oldest stablecoins launched in 2017 on the Ethereum (ETH) network. Its primary purpose is to provide a money lending platform using crypto pegged to the USD. DAI has also been adopted as a mode of payment and supported crypto in activities like online betting.
Ethereum’s ever-growing community factors in DAI’s economic expansion, making it an accessible financing solution in Web 3.0 for traders. Not to mention that it also holds various ERC-20 tokens and non-fungible tokens (NFTs) as collateral. It is currently the best Web 3.0 loan solution with $5.4 billion in market cap and a daily trading volume of $147 million.
The best EUR stablecoin: Euro Tether (EURt)
Euro Tether (EUR), launched by Tether Limited Inc., became the second-most popular stablecoins after its release in 2014. It had steep competition with Euro Coin (EUROC) but eventually got a surge in market cap reaching $37.54 million. Its daily trading volume found stability at $824.4k with a strong growth potential.
EURt benefits from the same infrastructure as USDT, making it one of the most secure and adopted stablecoins in the world. Given the backing currency’s strength in foreign exchange, projections of over 20% return on investments are expected within 2025, especially as the euro continues to grow as a reserve currency with its improving conversion rate with the USD.
Enterprise-focused adoption: Global Dollar (USDG)
The Global Dollar Network shares the same vision as other stablecoins to facilitate institutional trading. Instead of competing with USDT, it offers non-stop seamless and low-cost global transactions for enterprises. It’s a niche sector with lots of potential for growth in tech companies and financial institutions.
The Global Dollar (USDG) token is in its early stages, with a $92.48 million market cap and over $11,000 average transaction volume in 24 hours. Though small compared to other assets on this list, it is acknowledged as one of the top stablecoins considering it was released in November 2024. It still has room to grow and there’s a huge potential for 2025.
The most liquid stablecoin: First Digital (FDUSD)
Launched in 2023, First Digital USD faced tough competition from established stablecoins. However, it quickly stood out and became one of the top stablecoins as its blockchain offers the unique property of being programmable and modular. Thus, it is highly versatile for cross-border transactions using smart contracts.
Despite being new, FDUSD has already reached a $2.1 billion market cap and a $3.9 billion daily trading volume. It is not as widely adopted as its contemporaries but is growing at an impressive rate and earned a spot in the top 50 crypto in the CoinMarketCap charts. There’s a significant interest in its smart chain, suggesting it will attract more users over time.
Top choice for DeFi collateral: Frax (FRAX)
Frax (FRAX) is a stablecoin example of an asset with a structure that aids its long-term stability but makes it challenging to get into for beginner users. Its network has a complex infrastructure relying on Angle Algorithmic market operations (AMO) smart contracts to run its lending market and swap apps. It serves to realise Frax’s vision of becoming an algorithmic finance solution in Ethereum that is fully decentralised and highly scalable.
Frax boasts a market cap of $631.8 million and a trading volume of $8.5 million per 24 hours. It is partnered with Noble, an asset issuance chain built on the Cosmos blockchain, to expand its footprint beyond Ethereum. This helps Frax become a top-tier stablecoin recommended to Cosmos (ATOM) users.
The most 1:1 with the US dollar: TrueUSD (TUSD)
TrueUSD (TUSD) offers real-time attestations of its reserves, giving users full transparency and reassurance of its inflation and deflation dynamics. It was the first to do so when it launched in December 2019. TUSD is accessible on multiple blockchain networks working with the TrustToken platform mostly used for trading or transfers in exchanges and DeFi protocols.
TUSD is currently ranked 125 of all crypto assets which seems low but it is one of the most popular stablecoins. It averages $60 million in trading volume per 24 hours and has a $495 million market cap. TUSD is a stablecoin recommended to users who plan to invest in DeFi projects or participate in decentralised investment circles.
Stablecoin for internet bond: Ethena USDe (USDE)
The Ethena USDe (USDE) is celebrating the anniversary of its launch in 2024 February as of writing and the asset reached significant strides in the financial sector. It reached a $6 billion market cap and monitors roughly $67 million trading volume per 24 hours. Ethena USDe is easily one of the top recommended stablecoin brands for return on investment.
It is marketed as the ‘synthetic dollar’ for its 1:1 peg to the USD and as the ‘internet bond’ for its potential to replace traditional banking. Ethena USDe also offers innovative features like yield-staking and derivatives trading using staked Ether (stETH), giving users more options to capitalise on bullish market trends.
Important traits of the most popular stablecoin
The curated list of major stablecoins represents the best stablecoin brands to consider if you’re expanding your portfolio. They excel at all the essential criteria for what they are designed to be as useful assets and platforms for financing. Here are the criteria to help you identify the best stablecoins:
- Adoption → This refers to the number of potential uses for an asset. Compared to volatile crypto, stablecoins have the advantage of being easy to support across various sectors and many brands aim to capitalise on that. Examples include the asset’s usefulness in money lending, trading, or use of services like Sportsbet.io’s sports betting platform.
- Liquidity → The main goal of the top 10 stablecoins is to be liquid so they can serve their purpose in DeFi. This refers to how likely you can easily transfer, trade, or convert into fiat at your discretion. Recommended stablecoin brands with wider adoption naturally benefit from their increased liquidity, offering better advantages than lesser-known ones.
- Auditing → Stablecoin requires a careful review of its reserves, collateralisation, and transaction history to keep its prices pegged to the target asset. Thus, auditing is essential and a good system ensures that reserves are backing the value of assets in circulation.
If you’re looking just to add a handful of them to your portfolio, prioritise those that best suit your investment goals. Conduct a thorough stablecoin comparison and opt for the digital asset you know will be the most useful for you as a crypto investor.
Frequently asked questions
Here are frequently asked questions about stablecoins:
What is the best stablecoin?
Being the best one among the long list of stablecoins is subjective as it depends on your investment goals. However, Tether (USDT) is the go-to stablecoin considering its widespread adoption, high liquidity and popularity.
What are the top stablecoins?
Tether (USDT) stands as the king in the stablecoin ranking, making it a popular choice among investors. USD Coin (USDC) is a good stablecoin example that can rival it in terms of function and adoption, too.
What are some popular stablecoins?
Major stablecoin brands like Tether (USDT) and USD Coin (USDC) dominate the market in terms of adoption and are widely used across DeFi platforms. PayPal USD (PYUSD) is also great because it’s also tied to a world-famous digital wallet app of the same name – PayPal.
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