USD Coin is a digital stablecoin whose value is linked to the US dollar. USD Coin is controlled by the Centre consortium, which was created by Circle and comprises members from the cryptocurrency exchange Coinbase as well as Bitcoin mining company Bitmain, which is a Circle investor.
People trust USD Coin more than other stablecoins because it was created by reputable and "trustworthy" companies like Coinbase, and Circle. USD Coin is also the default & recommended stablecoin on Coinbase, as expected.
For the past few months, BNB was the 4th biggest cryptocurrency by market capitalization, after Bitcoin, Ethereum, and Tether. Recently, the popular stablecoin, TerraUSD, de-pegged from $1. Currently, it's trading at less than 20 cents, which is absolutely horrible, since it's supposed to be locked to $1. This caused mass panic and people are switching to other stablecoins. As a result, the number of USD Coin holders increased by a lot. This caused USD Coin to gain a market capitalization higher than BNB's (Binance Coin's).
However, this does not mean you should switch from TerraUSD to USD Coin. We think TerraUSD will eventually re-peg to $1, so, given enough time, you'll probably get your money back. But, after you do get your money back, you shouldn't switch over to USD Coin. This is because, according to CNBC, actual USD in a bank account made up only 60% of USD Coin's reserves. The remaining 40% was backed by a variety of debt securities and bonds.
Tether, the biggest stablecoin, is also not fully backed by USD. Less than 3% of its reserves are USD. The majority of the rest are made up of commercial paper, a form of unsecured, short-term debt which is riskier than government bonds, according to CNBC.
What we're trying to say is, you should stay away from USD Coin and Tether. We believe the safest stablecoin may be Binance USD (ticker: BUSD). This is because it is regularly audited by 3rd parties and is confirmed to be 100% backed by actual dollars in a bank account. Binance, compared to other cryptocurrency companies, is pretty trustworthy as well.
You can expect other stablecoins such as Pax, TrueUSD, and others, to move up in ranking as well, for the next few weeks, since everybody is seeking alternatives to the now fallen TerraUSD stablecoin.
If you're using Coinbase as your cryptocurrency exchange, you can sell some of your coins for Cash in your Coinbase account. As far as we know, this cash is not a stablecoin or anything, it's simply a number in your Coinbase account (similar to money in your PayPal account), meaning it will NOT fluctuate in price at all. So, we think you should probably use Coinbase's cash feature rather than a stablecoin if you're using Coinbase. Otherwise, it's probably a good idea to stick to BUSD.