Stablecoins constitute a unique category of cryptocurrencies designed to maintain a stable value by pegging their worth to a reserve asset, such as fiat currency or commodities. This mechanism addresses the notorious volatility associated with traditional cryptocurrencies like Bitcoin and Ethereum, making stablecoins more suitable for everyday transactions and a viable alternative for users seeking price stability in the digital asset space.
The stablecoin market has experienced remarkable growth in recent years. By 2024, the market capitalisation of stablecoins has surpassed $150 billion, with prominent players like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) at the forefront. This expansion highlights their rising adoption across diverse sectors, including remittances, trading, and decentralised finance (DeFi).
