$USDC Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to another asset, such as a fiat currency (like the US dollar) or a commodity (like gold). This stability aims to address the high volatility often associated with other cryptocurrencies. Here's a breakdown of key aspects:

Key Characteristics:

* Price Stability:

* The primary goal is to minimize price fluctuations.

* This makes them more suitable for everyday transactions and as a store of value compared to volatile cryptocurrencies.

* Pegging Mechanism:

* Stablecoins achieve stability through various mechanisms, including:

* Fiat-collateralized: Backed by reserves of fiat currencies.

* Crypto-collateralized: Backed by other cryptocurrencies.

* Commodity-collateralized: Backed by commodities like gold.

* Algorithmic: Rely on algorithms to maintain their peg.