#USStablecoinBill A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. This stability makes them useful for trading, lending, and payments within the volatile crypto market. Unlike assets like Bitcoin or Ethereum, stablecoins aim to minimize price fluctuations.

Fiat-backed stablecoins hold reserves of the pegged currency, while crypto-backed ones use other cryptocurrencies as collateral. Algorithmic stablecoins employ code to manage supply and demand to maintain their peg. Their stability offers a reliable medium of exchange and store of value in the decentralized finance (DeFi) space, facilitating various financial activities without the extreme price swings associated with other digital assets.