Stablecoin market cap exceeds $250 billion, but 90% of people still misuse them!
🌟 What are stablecoins?
Stablecoins are a type of cryptocurrency that achieve price stability by pegging to stable assets like USD or gold.
Compared to Bitcoin's high volatility, they are more suitable for daily transactions, storage, and financial scenarios, regarded as the 'digital dollar' of the crypto world 🌐
📊 Bank for International Settlements (BIS) data
The 2024 report indicates that stablecoins have become a core component of the crypto market, driven by factors including cross-border payments, DeFi ecosystems, and demand for de-dollarization in emerging markets.
Institutions and enterprises are also flooding in: used for supply chain finance, payroll, international trade settlements, etc. 💼
📌 Three main types of stablecoins
1. Fiat collateralized stablecoins 💰
Definition: 1:1 pegged to USD and other fiat currencies, issuers must hold equivalent reserve assets.
Representative projects:
USDT (Tether) 🚀
Market cap: $155.408 billion (2025.6)
Supports multiple chains: TRON, Ethereum, BNB Chain
USDC (USD Coin) 📄
Market cap: $60.631 billion
Advantages: Regular audits, strong compliance
USD1 🌍
Launched in March 2025, 100% backed by U.S. Treasury bonds / dollar deposits
Advantages: ✅ High stability, ✅ Suitable for beginners and institutions
Risks: ⚠️ Depends on issuer transparency, ⚠️ May face regulatory freezes 2. Crypto asset collateralized stablecoins ⛓️ Definition: Over-collateralized ETH/BTC and other crypto assets (collateralization rate 150%-200%), maintained through smart contracts.
Representative projects:
DAI 🧠
Issued by MakerDAO, pegged to USD, highly decentralized
Advantages: ✅ Censorship-resistant, ✅ No need for centralized institutions
Risks: ⚠️ Collateral asset plummeting may trigger liquidation, ⚠️ Complex operations 3. Algorithmic stablecoins 🤖 Definition: Pure code algorithms adjust supply and demand without physical collateral (similar to central bank monetary policy).
Representative projects:
USDe (Ethena) 📈
Market cap: $5.897 billion, algorithm + hedging mechanism
FRAX ⚖️
Partially collateralized + algorithmic mixed model
Advantages: ✅ Low entry barriers, ✅ Strong theoretical scalability
Risks: ⚠️ Depends on market confidence, ⚠️ Extreme market conditions may lead to collapse (like the 2022 UST incident)
💎 Core advantages of stablecoins
Price stability 📊
Avoids cryptocurrency volatility, suitable for daily transactions and savings.
Cross-border payment artifact 🌐✈️
Traditional remittances: Average 5 days to arrive, fees 6.35%
Stablecoins: Real-time arrival, costs as low as $0.0001 (like Solana network)
Safe haven in the crypto world 🏖️
During market crashes, funds can quickly shift into stablecoins for safety while maintaining on-chain liquidity.
The lifeblood of the DeFi ecosystem 🔄
Core assets for lending, liquidity mining, and trading pairs, providing yield opportunities.
Financial inclusion tool 🌍
Users in emerging markets can access 'digital dollars' through stablecoins to combat local inflation.
🌐 Market status and trends (2025 data)
📈 Scale and growth
Total market cap: $250 billion, accounting for 7.48% of the crypto market
Active users: 240 million addresses, 1.4 billion transactions per year, volume $6.7 trillion
Institutional forecasts:
U.S. Department of the Treasury: Could reach $2 trillion by 2028
Citigroup: Could increase to $1.6 trillion by 2030 (assuming clear regulation)
🏆 Market landscape
USDT: 62.05% market share, multi-chain support (TRC20/ERC20, etc.)
USDC: Second, preferred by institutions (Visa/Mastercard already integrated)
Emerging projects: USDe, DAI, USD1 are growing rapidly
⚖️ Regulatory dynamics
USA: In 2024 (Stablecoin Regulation Bill) requires sufficient reserves + audits
EU: MiCA framework implementation, strict capital and transparency requirements
Hong Kong: Passed (Stablecoin Regulation Draft) in May 2025, ushering in a compliant issuance era ✨
Emerging markets: Used to combat inflation, but regulatory stance unclear
🚀 Comparison of mainstream stablecoin application scenarios
