Stablecoins by Market Capitalization
A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to an external reference, such as a fiat currency.
What is a stablecoin? Stablecoin is a cryptocurrency that is designed to minimize volatility by pegging to a more stable asset. Fiat currency digital asset is the most popular use case for stablecoins. It typically tracks popular national currencies such as the US Dollar, Euro, and the British Pound. Benefit of this includes being able to take advantage of blockchain technology and peer-to-peer value transfer while not being exposed to high volatility such as Bitcoin, Ethereum, or other cryptocurrencies. Stablecoins are relatively new kind of technology and each of them comes with different implementations, liquidity, risks, and acceptance.
| # | Coin | Price | 1h | 24h | 7d | 30d | 24h Volume | Market Cap | FDV | Market Cap / FDV | Last 7 Days | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3 |
Tether
USDT
|
$0.9992 | 0.0% | 0.0% | 0.0% | 0.0% | $41,973,051,691 | $175,731,332,423 | $181,271,503,981 | 0.9694371622865721 |
|
||
| 5 |
USDC
USDC
|
$0.9996 | 0.0% | 0.0% | 0.0% | 0.0% | $10,924,608,622 | $69,626,224,478 | $69,633,277,111 | 0.99989871749191 |
|
||
| 14 |
USDS
USDS
|
$1.00000 | 0.0% | 0.0% | 0.0% | 0.0% | $197,391,021 | $8,583,217,750 | $8,583,217,750 | 1.0 |
|
||
| 20 |
Ethena USDe
USDE
|
$0.9994 | 0.0% | 0.0% | 0.0% | 0.0% | $37,414,511 | $4,930,892,681 | $4,909,601,776 | 1.0043365849442283 |
|
||
| 23 |
Dai
DAI
|
Buy
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $127,186,133 | $4,480,899,085 | $4,480,899,085 | 1.0 |
|
|
| 30 |
USD1
USD1
|
$0.9985 | 0.0% | 0.0% | 0.0% | 0.1% | $863,012,703 | $3,238,901,322 | $3,238,901,322 | 1.0 |
|
||
| 33 |
PayPal USD
PYUSD
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $59,898,600 | $2,762,652,265 | $2,762,852,253 | 0.9999276154342357 |
|
||
| 35 |
Ripple USD
RLUSD
|
$1.00 | 0.0% | 0.0% | 0.0% | 0.0% | $197,402,909 | $2,701,694,583 | $2,701,694,583 | 1.0 |
|
||
| 36 |
Global Dollar
USDG
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $532,134,767 | $2,699,825,081 | $2,699,825,081 | 1.0 |
|
||
| 48 |
Falcon USD
USDF
|
$0.9944 | 0.0% | 0.1% | 0.1% | 0.0% | $456,739 | $1,823,146,263 | $1,823,146,263 | 1.0 |
|
||
| 54 |
United Stables
U
|
$0.9997 | 0.0% | 0.0% | 0.1% | 0.1% | $187,957,618 | $1,622,647,120 | $1,622,647,120 | 1.0 |
|
||
| 58 |
USDD
USDD
|
$0.9990 | 0.0% | 0.0% | 0.1% | 0.1% | $3,525,479 | $1,498,710,341 | $1,498,728,016 | 0.9999882063134495 |
|
||
| 65 |
BFUSD
BFUSD
|
$0.9989 | 0.0% | 0.0% | 0.0% | 0.1% | $2,519,260 | $1,318,536,011 | $1,318,536,011 | 1.0 |
|
||
| 69 |
USDGO
USDGO
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $63,850,191 | $1,081,020,893 | $1,081,020,893 | 1.0 |
|
||
| 74 |
Open USD
OUSD
|
$1.00 | 0.1% | 0.0% | 0.1% | 0.2% | $605,394 | $954,980,813 | $954,980,813 | 1.0 |
|
||
| 87 |
GHO
GHO
|
Buy
|
$0.9984 | 0.0% | 0.0% | 0.0% | 0.0% | $1,776,651 | $697,849,547 | $697,849,547 | 1.0 |
|
|
| 99 |
Usual USD
USD0
|
$0.9976 | 0.0% | 0.0% | 0.1% | 0.1% | $1,198,440 | $537,633,293 | $537,633,293 | 1.0 |
|
||
| 100 |
EURC
EURC
|
Buy
|
$1.11 | 0.0% | 0.6% | 1.2% | 0.5% | $32,101,618 | $519,506,936 | $519,506,936 | 1.0 |
|
|
| 104 |
TrueUSD
TUSD
|
$0.9996 | 0.1% | 0.1% | 0.0% | 0.0% | $8,596,463 | $494,338,185 | $494,338,185 | 1.0 |
|
||
| 108 |
YLDS
YLDS
|
Buy
|
$0.9992 | 0.0% | 0.1% | 0.0% | 0.0% | $15,331,890 | $467,097,077 | $467,097,077 | 1.0 |
|
|
| 109 |
A7A5
A7A5
|
Buy
|
$0.01186 | 0.0% | 1.2% | 1.9% | 2.8% | $2,142.09 | $465,628,271 | $465,628,271 | 1.0 |
|
|
USDtb
USDTB
|
$0.9991 | 0.0% | 0.0% | 0.0% | 0.0% | $95,300.86 | $416,549,622 | $416,549,622 | 1.0 |
|
|||
| 119 |
Re Protocol reUSD
REUSD
|
$1.11 | 0.0% | 0.1% | 0.1% | 0.5% | $1,397,529 | $380,804,199 | $380,804,199 | 1.0 |
|
||
| 128 |
SoFiUSD
SOFID
|
$0.9991 | 0.0% | 0.0% | 0.0% | 0.0% | $12,081,976 | $319,123,485 | $319,123,485 | 1.0 |
|
||
| 132 |
apxUSD
APXUSD
|
$0.9970 | 0.0% | 0.1% | 0.7% | 0.6% | $4,017,712 | $297,593,446 | $297,593,446 | 1.0 |
|
||
| 136 |
First Digital USD
FDUSD
|
$0.9966 | 0.0% | 0.1% | 0.1% | 0.1% | $84,603,765 | $282,855,828 | $282,855,828 | 1.0 |
|
||
Binance-Peg BUSD
BUSD
|
$0.9985 | 0.5% | 0.1% | 0.1% | 0.3% | $1,346,343 | $282,760,027 | $282,760,027 | 1.0 |
|
|||
| 152 |
Legacy Frax Dollar
FRAX
|
Buy
|
$0.9905 | 0.0% | 0.2% | 0.1% | 0.0% | $2,803,915 | $217,099,857 | $217,099,857 | 1.0 |
|
|
| 159 |
USX
USX
|
Buy
|
$0.9993 | 0.0% | 0.0% | 0.0% | 0.0% | $92,797.94 | $201,089,901 | $201,089,901 | 1.0 |
|
|
| 170 |
EUR CoinVertible
EURCV
|
$1.11 | 0.0% | 0.6% | 1.2% | 0.5% | $21,374,729 | $190,552,524 | $190,552,524 | 1.0 |
|
||
| 176 |
USAT
USAT
|
$0.9981 | 0.0% | 0.0% | 0.0% | 0.1% | $19,544,782 | $178,975,782 | $178,975,782 | 1.0 |
|
||
Polymarket USD
PUSD
|
$1.00000 | 0.0% | 0.0% | 0.0% | 0.1% | $38,829.90 | $174,239,881 | $174,239,881 | 1.0 |
|
|||
| 193 |
AUSD
AUSD
|
$0.9990 | 0.0% | 0.0% | 0.0% | 0.0% | $6,938,610 | $157,341,745 | $157,341,745 | 1.0 |
|
||
| 200 |
GUSD
GUSD
|
$0.9974 | 0.0% | 0.0% | 0.0% | 0.0% | $194,780 | $149,407,732 | $319,183,351 | 0.46809375000000003 |
|
||
| 204 |
crvUSD
CRVUSD
|
$0.9981 | 0.0% | 0.2% | 0.0% | 0.0% | $7,818,841 | $142,430,003 | $142,430,003 | 1.0 |
|
||
| 215 |
CASH
CASH
|
Buy
|
$0.9988 | 0.0% | 0.0% | 0.0% | 0.0% | $5,975,211 | $131,125,976 | $131,125,976 | 1.0 |
|
|
| 220 |
JPYSC
JPYSC
|
$0.006263 | 0.0% | 0.6% | 0.8% | 0.7% | - | $126,745,405 | $126,745,405 | 1.0 |
|
||
| 246 |
Aster USDF
USDF
|
$0.9971 | 0.0% | 0.0% | 0.0% | 0.1% | $68,793.06 | $112,163,353 | $112,163,353 | 1.0 |
|
||
| 252 |
Avant USD
AVUSD
|
$0.9979 | 0.0% | 0.1% | 0.0% | 0.0% | $606.15 | $106,760,734 | $106,760,734 | 1.0 |
|
||
| 257 |
Saturn Dollar
USDAT
|
$0.9988 | 0.0% | 0.0% | 0.0% | 0.0% | $826,858 | $104,032,427 | $104,032,427 | 1.0 |
|
||
| 269 |
Unity USD
UUSD
|
$0.9985 | 0.0% | 0.0% | 0.0% | 0.1% | $2,948,131 | $99,846,770 | $99,846,770 | 1.0 |
|
||
| 272 |
USDa
USDA
|
$0.9671 | 0.0% | 0.6% | 1.9% | 1.6% | $10.67 | $94,542,304 | $94,542,304 | 1.0 |
|
||
| 273 |
Frax USD
FRXUSD
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $2,064,734 | $94,219,697 | $94,245,746 | 0.9997235964928677 |
|
||
| 286 |
Ondo U.S. Dollar Token
USDON
|
$1.00 | 0.0% | 0.0% | 0.0% | 0.0% | - | $86,622,451 | $86,622,451 | 1.0 |
|
||
| 293 |
JPY Coin
JPYC
|
$0.006249 | 0.0% | 1.1% | 1.1% | 0.1% | $489,756 | $81,080,522 | $81,080,522 | 1.0 |
|
||
| 306 |
USDA
USDA
|
$0.8894 | 0.4% | 1.9% | 4.2% | 11.3% | $447,157 | $77,351,335 | $77,351,335 | 1.0 |
|
||
| 307 |
Tori trUSD
TRUSD
|
$0.9996 | 0.0% | 0.0% | 0.0% | 0.1% | $958,529 | $76,825,776 | $76,825,776 | 1.0 |
|
||
| 313 |
Cygnus Finance Global USD
CGUSD
|
$0.9920 | 0.0% | 0.0% | 0.0% | 0.0% | $14.80 | $75,647,322 | $75,647,322 | 1.0 |
|
||
| 319 |
Felix feUSD
FEUSD
|
$0.9975 | 0.1% | 0.6% | 0.2% | 0.1% | $141,782 | $74,817,480 | $8,875,280,729 | 0.008429871905159288 |
|
||
| 324 |
Lista USD
LISUSD
|
$0.9966 | 0.0% | 0.0% | 0.1% | 0.1% | $10,883.33 | $74,046,899 | $74,046,899 | 1.0 |
|
||
| 325 |
USDsui
USDSUI
|
$0.9998 | 0.1% | 0.0% | 0.1% | 0.0% | $1,943,513 | $73,798,857 | $73,798,857 | 1.0 |
|
||
| 341 |
DOLA
DOLA
|
Buy
|
$0.9962 | 0.0% | 0.0% | 0.1% | 0.0% | $1,779,094 | $70,106,857 | $117,701,930 | 0.5956304827882143 |
|
|
| 348 |
Axis USD
USDX
|
$0.9985 | 0.0% | 0.0% | 0.1% | 0.0% | $943,833 | $68,502,338 | $68,502,338 | 1.0 |
|
||
| 356 |
Crown BRLV
BRLV
|
$0.1784 | 0.0% | 0.2% | 2.1% | 10.9% | $2,191.61 | $66,165,525 | $66,165,525 | 1.0 |
|
||
| 359 |
Cap USD
CUSD
|
$0.9998 | 0.0% | 0.0% | 0.0% | 0.0% | - | $65,131,717 | $65,131,717 | 1.0 |
|
||
| 369 |
BRLA Digital BRLA
BRLA
|
$0.1771 | 1.7% | 1.7% | 2.5% | 10.8% | $127,418 | $62,692,348 | $62,692,348 | 1.0 |
|
||
| 372 |
Royal Euro
REUR
|
$4.13 | 0.0% | 262.8% | 260.8% | 254.5% | $19,804,868 | $62,008,637 | $20,669,545,573 | 0.0029999999999999996 |
|
||
| 417 |
Neutrl USD
NUSD
|
$0.9983 | 0.0% | 0.0% | 0.1% | 0.1% | $10,315.61 | $53,296,810 | $53,296,810 | 1.0 |
|
||
| 420 |
Precious Metals USD
PMUSD
|
$0.5914 | 0.0% | 1.2% | 2.9% | 5.2% | $2,648.47 | $52,776,519 | $52,776,519 | 1.0 |
|
||
| 422 |
f(x) Protocol fxUSD
FXUSD
|
$0.9999 | 0.0% | 0.0% | 0.0% | 0.0% | $14,758,883 | $52,213,223 | $52,213,223 | 1.0 |
|
||
| 435 |
Alloy Tether
AUSDT
|
$0.9998 | 0.0% | 0.0% | 0.0% | 0.0% | $0.9950 | $50,110,423 | $50,110,423 | 1.0 |
|
||
| 437 |
USDKG
USDKG
|
$1.00 | 0.0% | 0.1% | 0.2% | 0.1% | $33,935.72 | $50,055,177 | $50,055,177 | 1.0 |
|
||
| 442 |
Fidelity Digital Dollar
FIDD
|
$0.9991 | 0.0% | 0.0% | 0.0% | 0.0% | $11,043,378 | $49,316,900 | $49,316,900 | 1.0 |
|
||
| 453 |
Brazilian Digital
BRZ
|
$0.1773 | 0.6% | 0.6% | 2.4% | 9.7% | $60,886.12 | $47,680,333 | $47,680,333 | 1.0 |
|
||
| 480 |
JupUSD
JUPUSD
|
$0.9987 | 0.0% | 0.0% | 0.1% | 0.0% | $1,383,452 | $43,586,703 | $43,586,703 | 1.0 |
|
||
| 486 |
Frankencoin
ZCHF
|
$1.20 | 0.0% | 0.7% | 1.8% | 0.3% | $1,344,840 | $42,249,041 | $42,249,041 | 1.0 |
|
||
| 495 |
Resupply USD
REUSD
|
$0.9906 | 0.0% | 0.0% | 0.3% | 0.1% | $1,877,004 | $41,588,256 | $41,588,256 | 1.0 |
|
||
| 497 |
Metronome Synth USD
MSUSD
|
$0.8034 | 0.2% | 1.2% | 6.4% | 9.3% | $695,009 | $41,250,709 | $41,250,709 | 1.0 |
|
||
| 499 |
StraitsX XUSD
XUSD
|
$1.00 | 0.0% | 0.0% | 0.0% | 0.0% | $8,622,978 | $41,184,007 | $41,184,007 | 1.0 |
|
||
| 502 |
Main Street USD
MSUSD
|
$0.5313 | 0.0% | 2.8% | 5.1% | 4.7% | $619.49 | $40,476,988 | $40,476,988 | 1.0 |
|
||
| 506 |
AllUnity CHF
CHFAU
|
$1.20 | 0.0% | 0.7% | 1.9% | 0.3% | $7,675.57 | $40,356,483 | $40,356,483 | 1.0 |
|
||
XDAI
XDAI
|
Buy
|
$1.00000 | 0.0% | 0.0% | 0.0% | 0.0% | $288,814 | $40,209,351 | $40,209,351 | 1.0 |
|
||
Yuzu USD
YZUSD
|
$0.9989 | 0.0% | 0.0% | 0.0% | 0.0% | $3,000.27 | $40,059,367 | $40,059,367 | 1.0 |
|
|||
| 518 |
Noon USN
USN
|
$0.9987 | 0.0% | 0.0% | 0.0% | 0.0% | $1.25 | $38,709,461 | $38,709,461 | 1.0 |
|
||
| 523 |
BOLD
BOLD
|
$0.9958 | 0.0% | 0.0% | 0.1% | 0.3% | $2,061,038 | $37,707,752 | $37,707,752 | 1.0 |
|
||
| 529 |
MetaMask USD
MUSD
|
$0.9991 | 0.0% | 0.0% | 0.0% | 0.0% | $623,556 | $37,181,539 | $37,181,539 | 1.0 |
|
||
| 533 |
pathUSD
PATHUSD
|
$0.9998 | 0.0% | 0.0% | 0.1% | 0.2% | $151,722 | $36,709,026 | $36,709,026 | 1.0 |
|
||
| 538 |
Eurite
EURI
|
$1.11 | 0.0% | 0.6% | 1.2% | 0.6% | $2,848,583 | $36,189,841 | $36,189,841 | 1.0 |
|
||
| 559 |
Aegis YUSD
YUSD
|
$0.9987 | 0.0% | 0.0% | 0.0% | 0.0% | $2,891.65 | $34,565,999 | $34,565,999 | 1.0 |
|
||
| 562 |
Gemini Dollar
GUSD
|
$0.9987 | 0.0% | 0.0% | 0.0% | 0.0% | $354,777 | $34,489,854 | $34,489,854 | 1.0 |
|
||
| 564 |
BUSD
BUSD
|
$0.9972 | 0.0% | 0.1% | 0.2% | 0.2% | $2,737.49 | $34,318,405 | $34,318,405 | 1.0 |
|
||
| 618 |
Universal USD
USDU
|
$0.9995 | 0.0% | 0.0% | 0.1% | 0.1% | $126.23 | $30,744,028 | $30,744,028 | 1.0 |
|
||
| 664 |
Monerium EUR emoney
EURE
|
$1.11 | 0.1% | 0.6% | 1.3% | 0.8% | $855,916 | $27,662,746 | $27,662,746 | 1.0 |
|
||
| 679 |
Tokenised GBP
TGBP
|
$1.33 | 0.0% | 0.4% | 1.3% | 0.5% | $169,025 | $26,434,594 | $26,434,594 | 1.0 |
|
||
| 686 |
Bucket Protocol BUCK Stablecoin
BUCK
|
$0.9987 | 0.2% | 0.0% | 0.0% | 0.2% | $212,019 | $25,930,108 | $25,930,108 | 1.0 |
|
||
| 719 |
Electronic USD
EUSD
|
$0.9971 | 0.1% | 0.2% | 0.2% | 0.1% | $115,510 | $24,478,413 | $24,478,413 | 1.0 |
|
||
| 720 |
Liquity USD
LUSD
|
$1.02 | 0.1% | 0.0% | 0.7% | 1.4% | $134,843 | $24,279,719 | $24,279,719 | 1.0 |
|
||
| 731 |
TerraClassicUSD
USTC
|
$0.004223 | 0.5% | 0.0% | 8.4% | 18.7% | $892,760 | $23,537,141 | $25,644,588 | 0.9178209499834031 |
|
||
| 746 |
Pax Dollar
USDP
|
$0.9972 | 0.0% | 0.0% | 0.0% | 0.1% | $1,178,598 | $22,436,387 | $22,436,387 | 1.0 |
|
||
| 756 |
Hylo USD
HYUSD
|
$0.9991 | 0.0% | 0.0% | 0.0% | 0.1% | $357,512 | $22,049,723 | $22,049,723 | 1.0 |
|
||
| 770 |
JPY Coin v1
JPYC
|
$0.008693 | 0.3% | 0.1% | 6.2% | 4.1% | $108.43 | $21,455,009 | $21,455,009 | 1.0 |
|
||
| 775 |
JPY Coin
JPYC
|
$0.008201 | 0.5% | 3.8% | 11.8% | 3.7% | $552.82 | $21,322,870 | $21,322,870 | 1.0 |
|
||
| 777 |
USDH
USDH
|
$0.9968 | 0.1% | 0.1% | 0.0% | 0.0% | $1,876.49 | $21,291,856 | $99,687,326,797 | 0.00021358638672141597 |
|
||
| 778 |
Monerium EUR emoney [OLD]
EURE
|
$1.11 | 0.0% | 0.5% | 1.2% | 0.6% | $258,981 | $21,281,940 | $21,281,940 | 1.0 |
|
||
| 833 |
Mezo USD
MUSD
|
$0.9926 | 0.0% | 0.1% | 0.4% | 0.4% | $145,472 | $18,859,302 | $18,859,302 | 1.0 |
|
||
| 846 |
NXUSD
NXUSD
|
$0.9817 | 0.0% | 0.0% | 2.2% | 3.9% | $1.21 | $18,617,178 | $18,617,178 | 1.0 |
|
||
| 849 |
Stable Coin
SBC
|
$0.9988 | 0.0% | 0.0% | 0.1% | 0.0% | $6.27 | $18,588,026 | $18,588,026 | 1.0 |
|
||
| 866 |
USDPT | Western Union
USDPT
|
$0.9996 | 0.0% | 0.0% | 0.1% | 0.0% | $87,289.11 | $17,987,931 | $17,987,931 | 1.0 |
|
||
| 878 |
Stable Mint USD
USDSM
|
$0.9996 | 0.0% | 0.0% | 0.1% | 0.0% | $1,162,434 | $17,626,049 | $17,626,049 | 1.0 |
|
||
| 886 |
MegaUSD
USDM
|
$0.9950 | 0.1% | 0.6% | 0.7% | 0.9% | $425,887 | $17,328,510 | $17,328,510 | 1.0 |
|
||
Stablecoins Categories
| Name | 24h | Market Cap |
|---|---|---|
|
All Stablecoins
|
0.4%
|
$285,506,894,561
|
|
USD Stablecoin
|
0.4%
|
|
|
Fiat-backed Stablecoin
|
0.5%
|
|
|
GENIUS Act Compliant Stablecoin
|
0.2%
|
|
|
MiCA-Compliant Stablecoin
|
0.2%
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Synthetic Dollar
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0.0%
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Crypto-backed Stablecoin
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0.2%
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US Treasury-backed Stablecoin
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0.6%
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Algorithmic Stablecoin
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0.3%
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EUR Stablecoin
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0.4%
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RUB Stablecoin
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1.2%
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All Stablecoins
MiCA-Compliant Stablecoin
Fiat-backed stablecoins that are fully authorized under the European Union's Markets in Crypto-Assets (MiCA) regulation. These assets are issued by regulated entities such as Electronic Money Institutions (EMIs) or licensed credit institutions and adhere to strict European standards regarding 1:1 liquid reserve backing, transparent public auditing, and safeguarded custody to ensure consumer protection and financial stability.
Algorithmic Stablecoin
An algorithmic stablecoin is a type of stablecoin that maintains its peg to a specific value, such as a fiat currency or other assets through algorithmic mechanisms. These mechanisms adjust the supply of the stablecoin based on market demand often by issuing more coins when the price is above the peg and buying back or burning coins when the price is below the peg.
Top Stablecoins Sectors Market Cap Chart
Major Stablecoins Sectors Performance Chart
What are Stablecoins
Stablecoins are a type of cryptocurrency pegged to a reference asset like fiat money, or other commodities like gold. Stablecoins minimize the volatility of the crypto space by maintaining their pegs. There are four major types of stablecoins: fiat-backed stablecoins, crypto-collateralized stablecoins, commodity-backed stablecoins, and algorithmic stablecoins.
Centralized Stablecoins
Fiat-backed stablecoins, like USDT and USDC, are issued by a central entity and backed by reserves that are equal or greater than their tokens in circulation. However, the reserve breakdown between USDT and USDC is quite different. In the case of USDT, this includes secured loans, corporate bonds, funds and precious metals in addition to cash and cash equivalents. On the other hand, USDC is only backed by U.S. Treasury Securities and cash deposits. Commodity-collateralized stablecoins are similar to fiat-backed stablecoins, except that they are backed by other physical assets like precious metals, oils, or real estate.
Decentralized Stablecoins
Unlike centralized stablecoins, which are issued by a central entity, decentralized stablecoins run on smart contracts, with governance input from a designated community (the DAO). DAI by MakerDao is an example of a decentralized stablecoin, and it is collateralized by other cryptocurrencies such as ETH. In order for DAI to maintain a stable price, users borrow against their locked collateral. Due to the volatility of cryptocurrencies, users must deposit collateral worth more than the value they intend to borrow, and this collateral can be liquidated by the protocol if the value decreases below a certain threshold.
Finally, there are algorithmic stablecoins. These rely on two tokens – a stablecoin and another cryptocurrency that serves as the backing of the stablecoin – and an algorithm (or smart contract) regulates the supply and demand so that the stablecoin can maintain its peg. This worked in the case of Terra’s UST and LUNA, until UST’s depeg in May 2022 resulted in arbitrageurs exchanging it for LUNA, which was then dumped on the open market, creating a freefall on both fronts.
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