The Diversity of Stablecoins and the Development Prospects of Different Types

The stablecoin market is mainly divided into three categories: fiat-collateralized stablecoins, crypto-asset-collateralized stablecoins, and algorithmic stablecoins. Currently, fiat-collateralized stablecoins such as USDT and USDC dominate the market due to their first-mover advantage and market recognition. However, with the maturation of the crypto market and the improvement of regulatory policies, crypto-asset-collateralized stablecoins and algorithmic stablecoins are expected to encounter new development opportunities. For example, the application scenarios of crypto-asset-collateralized stablecoins in the DeFi ecosystem are constantly expanding, while algorithmic stablecoins may play a greater role in scenarios such as small payments in emerging markets and internal settlements of crypto assets.