The CoinGecko report suggests that stablecoins are facing challenges in maintaining their peg during volatile market periods. Established stablecoins like Tether USD (USDT), USD Coin (USDC), and DAI have shown improved ability to maintain their $1 peg, while newer and partially algorithmic stablecoins remain more volatile. Despite the challenges, stablecoin dominance typically increases during bearish market conditions. The total market cap of stablecoins has seen significant growth, increasing by 3,121.7% from January 2020 to March 2022. The top three stablecoins, USDT, USDC, and DAI, dominate the market, comprising 94% of the total market cap. Commodity-backed stablecoins have also gained traction, reaching a market cap of $1.3 billion, but still only account for 0.8% of their fiat-backed counterparts.



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