#StablecoinSurge

A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a reserve asset like a fiat currency (e.g., the US dollar) or commodities such as gold. Its main goal is to reduce the volatility often seen in cryptocurrencies like Bitcoin or Ethereum. Stablecoins can be classified into three types: fiat-collateralized, crypto-collateralized, and algorithmic. They are widely used for trading, remittances, and decentralized finance (DeFi) applications because of their price stability. Popular examples include Tether (USDT), USD Coin (USDC), and Dai (DAI). Stablecoins aim to provide the benefits of cryptocurrencies without the wild price fluctuations.