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	$0.9992	0.02%	0.13%	0.12%	$137.96B$137,955,800,297	$198,410,343,946 198,567,046,795 USDT	138,064,756,647 USDT
8	USDC USDC	$0.9998	0.00%	0.02%	0.03%	$40.72B$40,718,750,814	$12,414,637,340 12,416,825,877 USDC	40,725,928,991 USDC
27	Ethena USDe USDe	$1.00	0.03%	0.11%	0.07%	$5.53B$5,527,728,508	$148,139,213 148,043,310 USDE	5,524,149,963 USDe
28	Dai DAI	$0.9997	0.02%	0.04%	0.06%	$5.36B$5,363,553,769	$207,251,210 207,321,881 DAI	5,365,382,703 DAI
69	First Digital USD FDUSD	$0.9981	0.01%	0.07%	0.06%	$1.79B$1,786,153,896	$10,047,876,782 10,067,068,738 FDUSD	1,789,565,541 FDUSD
133	USDD USDD	$0.9985	0.03%	0.04%	0.05%	$740.45M$740,446,137	$4,057,174 4,063,377 USDD	741,578,316 USDD
168	PayPal USD PYUSD	$0.9991	0.02%	0.03%	0.07%	$503.14M$503,140,503	$31,180,843 31,207,372 PYUSD	503,568,581 PYUSD
169	TrueUSD TUSD	$1.02	0.11%	1.02%	1.33%	$503.09M$503,086,292	$64,532,513 63,572,421 TUSD	495,601,553 TUSD
207	Usual USD USD0	$1.00	0.03%	0.01%	0.02%	$666.19M$666,188,151	$50,928,924 50,909,844 USD0	665,938,560 USD0
208	Frax FRAX	$0.9951	0.04%	0.02%	0.05%	$646.27M$646,268,839	$20,438,425 20,538,506 FRAX	649,433,438 FRAX
	Ondo US Dollar YieldUSDY	$1.07
	TerraClassicUSDUSTC	$0.03
	USDJUSDJ	$1.12
	USDBUSDB	$1.01
	STASIS EUROEURS	$1.06
	Pax DollarUSDP	$1.00
	EURCEURC	$1.06
	BUSDBUSD	$1.00
	Gemini DollarGUSD	$1.00
	USDX [Kava]USDX	$0.59
	Liquity USDLUSD	$1.00
	Anchored Coins AEURAEUR	$1.05
	Venus BUSDvBUSD	$0.02
	Steem DollarsSBD	$4.11
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.05
	XSGDXSGD	$0.75
	EuriteEURI	$1.06
	Celo DollarCUSD	$1.00
	Global DollarUSDG	$1.01
	Reserve DollarRSV	$1.00
	BIDRBIDR	$0.00
	ZUSDZUSD	$1.00
	Rupiah TokenIDRT	$0.00
	Verified USDUSDV	$1.00
	EdelcoinEDLC	$0.72
	GYENGYEN	$0.01
	VNX Swiss FrancVCHF	$1.14
	HUSDHUSD	$0.05
	sUSDSUSD	$0.99
	Fei USDFEI	$0.98
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	MNEEMNEE	$1.00
	Celo EuroCEUR	$1.06
	VNX EuroVEUR	$1.06
	VaiVAI	$0.99
	Prisma mkUSDMKUSD	$0.99
	DjedDJED	$1.00
	Sperax USDUSDs	$1.00
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	Savings DaiSDAI	$1.12
	AUSDAUSD	$1.00
	Overnight.fi USD+ (Base)USD+	$1.01
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	DOLADOLA	$1.00
	lisUSDlisUSD	$1.00
	USDP StablecoinUSDP	$1.00
	Worldwide USDWUSD	$1.00
	Gyroscope GYDGYD	$1.00
	GHOGHO	$1.00
	Fathom DollarFXD	$1.00
	Overnight.fi USD+ (Arbitrum)USD+	$1.00
	Overnight.fi USD+ (Blast)USD+	$1.01
	ZedxionUSDZ	$1.00
	Magic Internet MoneyMIM	$1.00
	xDAIxDAI	$1.00
	Decentralized USD (DefiChain)DUSD	$0.06
	Overnight.fi USD+ (Optimism)USD+	$1.00
	Angle ProtocolEURA	$1.05
	XUSDXUSD	$1.00
	MAIMIMATIC	$0.46
	CriptodólarUXD	$1.00
	usdx.money (USDX)USDX	$1.00
	Amnis Aptos CoinAMAPT	$13.01
	BounceBit USDBBUSD	$1.00
	USDHUSDH	$0.97
	XIDRXIDR	$0.00
	Inter Stable TokenIST	$1.00
	Brazilian Digital TokenBRZ	$0.16
	Moola Celo USDmCUSD	$1.01
	StablR EuroEURR	$1.06
	Quantoz EURQEURQ	$1.05
	Quantoz USDQUSDQ	$1.00
	JPY CoinJPYC	$0.01
	BiLiraTRYB	$0.03
	ZARP StablecoinZARP	$0.05
	Moola Celo EURmCEUR	$1.06
	CryptoFrancXCHF	$0.41
	Tether MXNtMXNt	$0.05
	dForce USDUSX	$1.00
	Meter StableMTR	$0.64
	wanUSDTWANUSDT	$1.00
	Overnight DAI+DAI+	$1.00
	Fantom USDFUSD	$0.38
	One CashONC	$0.06
	JPY Coin v1JPYC	$0.01
	ParallelPAR	$0.60

Top Stablecoin Tokens by Market Capitalization