Share of five largest stablecoin in overall stablecoin market cap on June 21, 2022

Tether and USD Coin make up the majority of the overall stablecoin market, whilst algorithmic stablecoins are but a fraction of their size. Estimates are that Tether (USDT) alone - the most well-known stablecoin pegged to the U.S. dollar - makes up nearly half of the stablecoin market cap in June 2022. The top three of these digital assets are all connected to the performance of the U.S. dollar, with Dai (DAI) being pegged to a different cryptocurrency, its so-called governance token MKR or Maker. Algorithmic stablecoins - cryptocurrencies that do not use fiat currencies or other cryptocurrencies as their backing but instead rely on an algorithm to keep their price stable, similar to the design of TerraUSD (UST) and Terra (LUNA) - do not feature in the top five. FRAX combines elements of an algorithmic design but still contains a partial backing by collateral.