Stablecoin Surge #stablecoin

USDT (Tether): Pegged to the US dollar, it is one of the most widely used stablecoins.

• USDC (USD Coin): Also tied to the dollar, it is considered transparent

thanks to regular audits.

• DAI: A decentralized stablecoin, whose value is backed by a system of crypto collateral.

• BUSD: Binance USD, another stablecoin

linked to the dollar.

How they are backed:

1. Fiat-backed stablecoins: Each unit is backed by reserves of real money or equivalent assets (e.g. USDT,

USDC).

2. Crypto-collateralized stablecoins:

Based on other cryptocurrencies as collateral (e.g. DAI).

3. Algorithmic stablecoins: Maintained

stable through automatic supply and demand mechanisms.$USDC