#stabelcoin
What are the stable coins ?
Stablecoins are cryptocurrencies designed to maintain a stable value, usually by being pegged to a reserve asset like the US dollar, euro, or gold. They're widely used in crypto trading for transferring value, hedging volatility, and earning yield.
đš Main Types of Stablecoins
1. Fiat-Collateralized (backed by real-world currency)
Backed 1:1 by fiat currencies like USD held in reserve.
Most popular and widely trusted.
Examples:
USDT (Tether) â Pegged to USD, most traded stablecoin.
USDC (USD Coin) â Issued by Circle, transparent reserves.
BUSD (Binance USD) â Formerly issued by Binance; now phased out.
TrueUSD (TUSD) â Pegged to USD with independent attestations.
2. Crypto-Collateralized
Backed by other cryptocurrencies, usually over-collateralized to account for volatility.
Uses smart contracts for automation.
Examples:
DAI â Decentralized, pegged to USD, backed by ETH and other tokens (via MakerDAO).
sUSD â Pegged to USD, backed by SNX (Synthetix).
3. Algorithmic Stablecoins
No collateral; stability maintained via algorithms and smart contract-based supply/demand balancing.
Riskier and prone to depegging.
Examples:
FRAX â Partially collateralized and partially algorithmic.
AMPL â Supply adjusts daily based on price.
UST â (Now defunct) TerraUSD â collapsed in May 2022.
4. Commodity-Backed Stablecoins
Pegged to commodities like gold.
Examples:
PAXG (Pax Gold) â Backed by physical gold.
XAUT (Tether Gold) â Also backed by physical gold.
đ¸ Top 5 Stablecoins (by Market Cap as of June 2025)
Rank Name Ticker Peg Issuer
1 Tether USDT 1 USD Tether Ltd.
2 USD Coin USDC 1 USD Circle
3 DAI DAI 1 USD MakerDAO
4 TrueUSD TUSD 1 USD Archblock
5 FDUSD FDUSD 1 USD First Digital
đš Why Stablecoins Matter in Crypto Trading
đ Easy switching between volatile crypto assets and stable value
đŚ Used in DeFi protocols for lending, borrowing, yield farming
đ Facilitate cross-border payments
đ Hedge against market crashes
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