Stablecoins — Master the Basics💸
1️⃣ USDT (Tether):
- Market Cap: $120B
- Available on 70+ chains
- Backed by assets like U.S. Treasuries and Reverse Repo Agreements
- Successfully processed $20B redemptions in 72 hours
- Known for liquidity but… let’s say flexible with regulations and has attracted US government action 19 times
2️⃣ USDC (Circle):
- Market Cap: $34B
- Spread across 79 chains
- Strictly regulated, aiming for transparency
- Reserve include short-term US Treasuries
- First stablecoin under the EU’s MiCA regulation 🎩
- Once depegged to $0.88—because even “stable” coins have bad days.
📝 Each token can be exchanged for $1 in reserves, and when prices fluctuate, savvy traders (aka arbitrageurs) step in to profit, keeping them around $1.
⚖️ Big Picture:
⚠️USDC leans hard into compliance and transparency.
⚠️USDT’s focus? Easy access and market liquidity
