The bloody crypto market crash has seen the number of stablecoins on exchanges tag new all-time highs, but algorithmic stable token hodlers are suffering.
Centralized stablecoins have remained resilient during the crypto market downturn, with two stable tokens currently ranked among the top ten crypto assets by market capitalization.
Tether and USD Coin are currently ranked third and eighth respectively, having maintained a solid grip on their dollar-pegs despite the massive market downturn.
According to Coingecko, Tether and USDC currently represent 80% of the $100 million combined stablecoin capitalization. The total supply of all stablecoins has surged almost 190% over the past 90 days.
Tweeting on May 23, the founder of Global Macro Investor, Raoul Pal, commented on recent concerns regarding the capacity for stablecoins to maintain their peg during market conditions of extreme volatility, likening stable tokens to money market funds:
“I’m just not sure why the fascination with stable coin risks, they are extremely similar to money market funds except that they trade as a token. Neither have guarantees. [Market money funds] make the financial world go round. [Stablecoins] make the crypto world go round too.”