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Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins offer price stability, making them ideal for everyday transactions, remittances, and decentralized finance (DeFi) applications. They come in different types—fiat-backed, crypto-backed, and algorithmic—each with its own mechanism to maintain stability. Popular examples include USDT, USDC, and DAI. By bridging the gap between traditional finance and blockchain, stablecoins provide a reliable medium of exchange and store of value in the rapidly evolving digital economy.
