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	$0.9999	0.00%	0.04%	0.02%	$118.84B$118,835,549,279	$59,619,538,769 59,622,338,000 USDT	118,841,128,795 USDT
6	USDC USDC	$0.9999	0.01%	0.02%	0.01%	$35.43B$35,426,959,547	$6,671,283,216 6,671,859,873 USDC	35,430,021,810 USDC
17	Dai DAI	$1.00	0.00%	0.01%	0.01%	$5.37B$5,365,428,309	$80,504,052 80,503,368 DAI	5,365,382,703 DAI
29	First Digital USD FDUSD	$1.00	0.02%	0.00%	0.12%	$2.94B$2,940,659,153	$5,395,447,165 5,392,892,343 FDUSD	2,939,266,709 FDUSD
80	PayPal USD PYUSD	$0.9993	0.02%	0.02%	0.04%	$733.06M$733,055,143	$36,699,181 36,724,468 PYUSD	733,560,247 PYUSD
81	USDD USDD	$0.9992	0.02%	0.00%	0.13%	$732.16M$732,160,853	$2,711,615 2,713,837 USDD	732,760,854 USDD
109	TrueUSD TUSD	$0.9986	0.04%	0.03%	0.03%	$494.9M$494,902,583	$33,718,914 33,766,537 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$0.9988	0.01%	0.01%	0.03%	$2.6B$2,597,612,332	$45,353,370 45,406,110 USDE	2,600,633,007 USDe
206	Frax FRAX	$0.9971	0.00%	0.02%	0.01%	$647.56M$647,563,871	$8,173,939 8,197,548 FRAX	649,434,271 FRAX
210	Ondo US Dollar Yield USDY	$1.06	0.03%	0.02%	0.43%	$340.41M$340,406,170	$125,305 118,574 USDY	322,119,848 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.13
	STASIS EUROEURS	$1.11
	Pax DollarUSDP	$1.00
	TerraClassicUSDUSTC	$0.02
	USDX [Kava]USDX	$0.76
	Gemini DollarGUSD	$1.00
	BUSDBUSD	$1.00
	Liquity USDLUSD	$1.00
	Anchored Coins AEURAEUR	$1.11
	EURCEURC	$1.11
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.10
	Celo DollarCUSD	$1.00
	EuriteEURI	$1.11
	Steem DollarsSBD	$2.47
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.77
	EdelcoinEDLC	$1.13
	sUSDSUSD	$0.99
	BIDRBIDR	$0.00
	ZUSDZUSD	$1.00
	Rupiah TokenIDRT	$0.00
	Verified USDUSDV	$1.00
	GYENGYEN	$0.01
	HUSDHUSD	$0.04
	VNX Swiss FrancVCHF	$1.19
	Fei USDFEI	$0.99
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	VaiVAI	$1.00
	Celo EuroCEUR	$1.11
	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
	USDP StablecoinUSDP	$1.00
	GHOGHO	$1.01
	Worldwide USDWUSD	$1.00
	Gyroscope GYDGYD	$1.00
	DOLADOLA	$0.99
	lisUSDlisUSD	$1.00
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.02
	Fathom DollarFXD	$1.00
	Brazilian Digital TokenBRZ	$0.18
	Magic Internet MoneyMIM	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	CriptodólarUXD	$1.00
	USDHUSDH	$0.98
	XIDRXIDR	$0.00
	JPY CoinJPYC	$0.01
	dForce USDUSX	$1.00
	Angle ProtocolEURA	$1.11
	Decentralized USD (DefiChain)DUSD	$0.03
	MAIMIMATIC	$0.58
	BounceBit USDBBUSD	$0.99
	Moola Celo USDmCUSD	$0.98
	Inter Stable TokenIST	$1.00
	StablR EuroEURR	$1.11
	XUSDXUSD	$0.99
	Moola Celo EURmCEUR	$1.11
	ZARP StablecoinZARP	$0.06
	Meter StableMTR	$0.57
	Amnis Aptos CoinAMAPT	$5.93
	Tether MXNtMXNt	$0.05
	BiLiraTRYB	$0.03
	wanUSDTWANUSDT	$1.01
	JPY Coin v1JPYC	$0.01
	One CashONC	$0.07
	Mad USDMUSD	$0.06
	CryptoFrancXCHF	$1.05
	Overnight DAI+DAI+	$1.00
	Fantom USDFUSD	$0.65
	USNUSN	$0.98
	TORTOR	$0.01
	Moremoney USDMONEY	$0.99
	USD BancorUSDB	$0.12
	ParallelPAR	$0.38
	Digix Gold TokenDGX	$54.43
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22
	xDollar StablecoinXUSD	$1.05
	SORA Synthetic USDXSTUSD	$0.18

Top Stablecoin Tokens by Market Capitalization