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	$1.00	0.03%	0.02%	0.01%	$119.21B$119,207,154,268	$56,613,051,184 56,593,621,366 USDT	119,166,241,914 USDT
6	USDC USDC	$1.00	0.02%	0.01%	0.02%	$35.86B$35,864,653,165	$5,449,439,318 5,448,563,272 USDC	35,858,887,602 USDC
17	Dai DAI	$0.9999	0.01%	0.01%	0.00%	$5.37B$5,365,208,238	$94,725,204 94,728,285 DAI	5,365,382,703 DAI
29	First Digital USD FDUSD	$0.9998	0.02%	0.04%	0.07%	$2.94B$2,940,916,008	$5,487,455,628 5,488,295,384 FDUSD	2,941,366,062 FDUSD
83	USDD USDD	$0.9986	0.01%	0.06%	0.07%	$736.26M$736,256,857	$2,987,257 2,991,530 USDD	737,309,823 USDD
88	PayPal USD PYUSD	$0.9999	0.01%	0.03%	0.05%	$705.03M$705,032,316	$32,698,305 32,698,633 PYUSD	705,039,393 PYUSD
113	TrueUSD TUSD	$0.9988	0.01%	0.03%	0.02%	$495.02M$495,017,012	$32,554,531 32,592,973 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$0.9989	0.00%	0.01%	0.02%	$2.59B$2,585,770,199	$57,592,938 57,655,799 USDE	2,588,592,496 USDe
206	Frax FRAX	$0.9972	0.01%	0.01%	0.02%	$647.59M$647,588,603	$6,728,442 6,747,619 FRAX	649,434,271 FRAX
211	Ondo US Dollar Yield USDY	$1.06	0.02%	0.12%	0.14%	$340.09M$340,085,443	$941,307 891,581 USDY	322,119,848 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.13
	STASIS EUROEURS	$1.12
	Pax DollarUSDP	$1.00
	TerraClassicUSDUSTC	$0.02
	USDX [Kava]USDX	$0.78
	Gemini DollarGUSD	$1.00
	BUSDBUSD	$1.00
	Liquity USDLUSD	$1.00
	Anchored Coins AEURAEUR	$1.12
	EURCEURC	$1.12
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.10
	Steem DollarsSBD	$2.84
	Celo DollarCUSD	$1.00
	EuriteEURI	$1.12
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.77
	sUSDSUSD	$0.99
	EdelcoinEDLC	$1.13
	BIDRBIDR	$0.00
	Rupiah TokenIDRT	$0.00
	ZUSDZUSD	$1.00
	Verified USDUSDV	$1.00
	GYENGYEN	$0.01
	HUSDHUSD	$0.04
	VNX Swiss FrancVCHF	$1.18
	Fei USDFEI	$0.99
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	VaiVAI	$1.00
	Celo EuroCEUR	$1.12
	Prisma mkUSDMKUSD	$1.00
	DjedDJED	$1.00
	VNX EuroVEUR	$1.11
	Sperax USDUSDs	$1.00
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	USD+USD+	$1.00
	Savings DaiSDAI	$1.11
	GHOGHO	$1.00
	USDP StablecoinUSDP	$1.00
	Gyroscope GYDGYD	$1.00
	DOLADOLA	$1.00
	Worldwide USDWUSD	$1.00
	lisUSDlisUSD	$1.00
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.02
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	Fathom DollarFXD	$1.00
	Magic Internet MoneyMIM	$1.00
	CriptodólarUXD	$1.00
	Brazilian Digital TokenBRZ	$0.18
	XUSDXUSD	$1.00
	JPY CoinJPYC	$0.01
	USDHUSDH	$0.98
	XIDRXIDR	$0.00
	dForce USDUSX	$1.00
	MAIMIMATIC	$0.47
	BounceBit USDBBUSD	$0.99
	Angle ProtocolEURA	$1.12
	Decentralized USD (DefiChain)DUSD	$0.03
	Amnis Aptos CoinAMAPT	$7.20
	StablR EuroEURR	$1.12
	Inter Stable TokenIST	$1.00
	Moola Celo USDmCUSD	$0.98
	BiLiraTRYB	$0.03
	ZARP StablecoinZARP	$0.06
	Moola Celo EURmCEUR	$1.11
	Tether MXNtMXNt	$0.05
	JPY Coin v1JPYC	$0.01
	wanUSDTWANUSDT	$1.01
	Overnight DAI+DAI+	$1.00
	One CashONC	$0.07
	Meter StableMTR	$0.53
	Fantom USDFUSD	$0.62
	TORTOR	$0.01
	CryptoFrancXCHF	$1.17
	Mad USDMUSD	$0.06
	USNUSN	$0.98
	Moremoney USDMONEY	$1.01
	USD BancorUSDB	$0.13
	Sky DollarUSDS	$1.18
	ParallelPAR	$0.38
	Digix Gold TokenDGX	$54.34
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22
	xDollar StablecoinXUSD	$1.05

Top Stablecoin Tokens by Market Capitalization