Question 1

What are the different types of Stablecoins?

Accepted Answer

There are primarily three types of stablecoins: fiat-collateralized, crypto-collateralized, and non-collateralized. Fiat-collateralized stablecoins are backed by fiat currencies like the dollar or euro. Each stablecoin is equivalent to a specific amount of the fiat currency, which is held in reserve. Crypto-collateralized stablecoins are backed by other cryptocurrencies. Due to the volatility of cryptocurrencies, these stablecoins are often over-collateralized to absorb large price swings. Non-collateralized stablecoins are not backed by any reserve. Instead, they use a working mechanism, such as a smart contract, to maintain their value.

Question 2

What are the advantages of Stablecoins?

Accepted Answer

Stablecoins offer several advantages. Firstly, they provide stability in the highly volatile cryptocurrency market. This makes them a safe haven for investors during turbulent market conditions. Secondly, they enable the benefits of cryptocurrencies, such as fast and cheap transactions, while mitigating the risk of price fluctuations. Thirdly, they can be used as a medium of exchange, unit of account, and store of value, just like traditional money. Lastly, they can also facilitate cross-border transactions and remittances, providing a stable and efficient means of transferring value across borders.

Question 3

What are the disadvantages of Stablecoins?

Accepted Answer

Despite their advantages, stablecoins also have some disadvantages. One of the main concerns is the need for trust in the entity that holds the reserve assets. If this entity is not trustworthy, the stablecoin could lose its value. Additionally, fiat-collateralized stablecoins are subject to the same inflation and monetary policy issues as their underlying fiat currencies. Crypto-collateralized stablecoins, on the other hand, are exposed to the volatility of the underlying cryptocurrencies. Lastly, non-collateralized stablecoins rely on complex algorithms, which may not always work as expected, leading to instability.

#	Name	Price	1h %	24h %	7d %	Market Cap	Volume(24h)	Circulating Supply
3	Tether USDT	$0.9996	0.04%	0.01%	0.08%	$120.17B$120,170,141,008	$61,175,005,438 61,200,154,761 USDT	120,219,543,500 USDT
6	USDC USDC	$1.00	0.04%	0.03%	0.05%	$34.61B$34,614,716,255	$6,913,302,660 6,912,568,663 USDC	34,611,041,151 USDC
20	Dai DAI	$0.9998	0.01%	0.00%	0.02%	$5.36B$5,364,219,135	$99,821,014 99,842,666 DAI	5,365,382,703 DAI
35	First Digital USD FDUSD	$0.999	0.03%	0.00%	0.11%	$2.68B$2,684,505,716	$4,029,003,419 4,032,992,212 FDUSD	2,687,163,430 FDUSD
90	USDD USDD	$0.9987	0.01%	0.07%	0.20%	$756.37M$756,365,156	$2,036,132 2,038,797 USDD	757,355,076 USDD
112	PayPal USD PYUSD	$0.9998	0.02%	0.05%	0.02%	$642.8M$642,799,395	$17,995,564 17,999,335 PYUSD	642,934,108 PYUSD
129	TrueUSD TUSD	$0.9971	0.01%	0.00%	0.02%	$494.14M$494,141,611	$33,296,365 33,394,739 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$1.00	0.00%	0.01%	0.15%	$2.54B$2,544,412,633	$24,243,433 24,233,729 USDE	2,543,394,145 USDe
206	Frax FRAX	$0.9973	0.01%	0.01%	0.02%	$647.7M$647,701,617	$7,319,812 7,339,383 FRAX	649,433,438 FRAX
213	Ondo US Dollar Yield USDY	$1.06	0.07%	0.05%	0.47%	$394.61M$394,614,053	$3,750,067 3,521,276 USDY	370,538,759 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.14
	TerraClassicUSDUSTC	$0.02
	STASIS EUROEURS	$1.08
	Pax DollarUSDP	$1.00
	EURCEURC	$1.08
	Gemini DollarGUSD	$1.00
	Liquity USDLUSD	$1.00
	USDX [Kava]USDX	$0.61
	BUSDBUSD	$1.00
	Anchored Coins AEURAEUR	$1.08
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.08
	EuriteEURI	$1.08
	Steem DollarsSBD	$2.65
	Celo DollarCUSD	$1.00
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.76
	EdelcoinEDLC	$1.12
	BIDRBIDR	$0.00
	ZUSDZUSD	$1.00
	Rupiah TokenIDRT	$0.00
	Verified USDUSDV	$1.00
	GYENGYEN	$0.01
	sUSDSUSD	$1.00
	VNX Swiss FrancVCHF	$1.16
	HUSDHUSD	$0.04
	Fei USDFEI	$0.97
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	Celo EuroCEUR	$1.08
	VaiVAI	$1.00
	Prisma mkUSDMKUSD	$0.99
	DjedDJED	$1.00
	VNX EuroVEUR	$1.08
	Sperax USDUSDs	$1.00
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	Savings DaiSDAI	$1.11
	USD+USD+	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	DOLADOLA	$0.99
	USDP StablecoinUSDP	$1.00
	GHOGHO	$1.00
	Worldwide USDWUSD	$1.00
	lisUSDlisUSD	$0.99
	Gyroscope GYDGYD	$1.00
	Fathom DollarFXD	$1.00
	xDAIxDAI	$1.00
	Brazilian Digital TokenBRZ	$0.18
	XUSDXUSD	$1.00
	CriptodólarUXD	$1.00
	Magic Internet MoneyMIM	$1.00
	Amnis Aptos CoinAMAPT	$10.31
	ZedxionUSDZ	$1.00
	USDHUSDH	$1.00
	Decentralized USD (DefiChain)DUSD	$0.02
	XIDRXIDR	$0.00
	JPY CoinJPYC	$0.01
	Angle ProtocolEURA	$1.08
	StablR EuroEURR	$1.08
	MAIMIMATIC	$0.57
	USDSUSDS	$1.00
	Moola Celo USDmCUSD	$1.00
	BounceBit USDBBUSD	$1.00
	Inter Stable TokenIST	$1.00
	ParallelPAR	$0.78
	Moola Celo EURmCEUR	$1.09
	dForce USDUSX	$1.00
	ZARP StablecoinZARP	$0.06
	Tether MXNtMXNt	$0.05
	Meter StableMTR	$0.54
	BiLiraTRYB	$0.03
	CryptoFrancXCHF	$1.15
	Fantom USDFUSD	$0.64
	USNUSN	$0.98
	TORTOR	$0.01
	wanUSDTWANUSDT	$1.00
	Overnight DAI+DAI+	$1.00
	JPY Coin v1JPYC	$0.01
	USD BancorUSDB	$0.13
	One CashONC	$0.06
	Mad USDMUSD	$0.06
	Digix Gold TokenDGX	$65.08
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22
	xDollar StablecoinXUSD	$1.04
	SORA Synthetic USDXSTUSD	$0.05

Top Stablecoin Tokens by Market Capitalization