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	0.00%	0.01%	0.02%	$118.91B$118,911,458,326	$70,074,367,890 70,062,664,255 USDT	118,891,598,050 USDT
6	USDC USDC	$0.9998	0.01%	0.02%	0.01%	$35.61B$35,614,637,415	$7,218,349,920 7,219,616,264 USDC	35,620,885,434 USDC
17	Dai DAI	$1.00	0.00%	0.02%	0.00%	$5.37B$5,365,859,311	$73,084,116 73,077,625 DAI	5,365,382,703 DAI
29	First Digital USD FDUSD	$0.9998	0.04%	0.07%	0.01%	$2.93B$2,930,909,623	$5,640,249,368 5,641,321,173 FDUSD	2,931,466,578 FDUSD
84	PayPal USD PYUSD	$0.9995	0.00%	0.02%	0.03%	$731.8M$731,795,903	$24,424,289 24,437,566 PYUSD	732,193,690 PYUSD
85	USDD USDD	$0.9992	0.01%	0.03%	0.09%	$731.75M$731,752,350	$2,742,025 2,744,250 USDD	732,346,134 USDD
113	TrueUSD TUSD	$0.9992	0.02%	0.03%	0.07%	$495.18M$495,182,665	$34,365,656 34,394,727 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$0.999	0.01%	0.03%	0.01%	$2.59B$2,592,056,636	$64,324,084 64,386,911 USDE	2,594,588,369 USDe
206	Frax FRAX	$0.9975	0.05%	0.03%	0.02%	$647.82M$647,821,201	$2,274,548 2,280,211 FRAX	649,434,271 FRAX
212	Ondo US Dollar Yield USDY	$1.06	0.01%	0.01%	0.00%	$340.28M$340,284,274	$111,604 105,646 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	$1.11
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.10
	Celo DollarCUSD	$1.00
	Steem DollarsSBD	$2.55
	EuriteEURI	$1.12
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.77
	EdelcoinEDLC	$1.12
	sUSDSUSD	$0.98
	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	$1.02
	VNX EuroVEUR	$1.12
	Sperax USDUSDs	$1.00
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	USD+USD+	$1.00
	GHOGHO	$1.00
	Savings DaiSDAI	$1.11
	DOLADOLA	$1.00
	USDP StablecoinUSDP	$1.00
	Gyroscope GYDGYD	$1.00
	Worldwide USDWUSD	$1.00
	lisUSDlisUSD	$1.00
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.01
	Fathom DollarFXD	$1.00
	Magic Internet MoneyMIM	$1.00
	Brazilian Digital TokenBRZ	$0.18
	CriptodólarUXD	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	XUSDXUSD	$1.00
	XIDRXIDR	$0.00
	dForce USDUSX	$1.00
	USDHUSDH	$0.98
	JPY CoinJPYC	$0.01
	Decentralized USD (DefiChain)DUSD	$0.03
	BounceBit USDBBUSD	$1.00
	StablR EuroEURR	$1.12
	Angle ProtocolEURA	$1.12
	MAIMIMATIC	$0.57
	Moola Celo USDmCUSD	$0.99
	ZARP StablecoinZARP	$0.06
	Amnis Aptos CoinAMAPT	$6.78
	Moola Celo EURmCEUR	$1.11
	Inter Stable TokenIST	$1.00
	BiLiraTRYB	$0.03
	Meter StableMTR	$0.52
	One CashONC	$0.06
	Tether MXNtMXNt	$0.05
	Overnight DAI+DAI+	$1.00
	CryptoFrancXCHF	$1.19
	wanUSDTWANUSDT	$1.01
	Fantom USDFUSD	$0.62
	TORTOR	$0.01
	JPY Coin v1JPYC	$0.01
	Moremoney USDMONEY	$1.02
	Mad USDMUSD	$0.06
	USNUSN	$0.98
	Sky DollarUSDS	$1.09
	USD BancorUSDB	$0.13
	YUSD StablecoinYUSD	$0.99
	ParallelPAR	$0.38
	Digix Gold TokenDGX	$53.94
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22

Top Stablecoin Tokens by Market Capitalization