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	0.01%	0.01%	0.01%	$118.89B$118,890,185,644	$78,988,799,131 78,989,737,512 USDT	118,891,598,050 USDT
6	USDC USDC	$0.9999	0.00%	0.00%	0.00%	$35.46B$35,455,322,655	$8,701,525,182 8,702,345,060 USDC	35,458,663,335 USDC
17	Dai DAI	$1.00	0.01%	0.02%	0.01%	$5.37B$5,365,913,083	$86,274,992 86,266,464 DAI	5,365,382,703 DAI
29	First Digital USD FDUSD	$0.9999	0.01%	0.02%	0.01%	$2.92B$2,921,246,543	$6,715,732,144 6,716,237,989 FDUSD	2,921,466,578 FDUSD
85	USDD USDD	$0.9988	0.01%	0.01%	0.12%	$731.76M$731,760,973	$3,239,741 3,243,495 USDD	732,609,033 USDD
87	PayPal USD PYUSD	$0.9999	0.04%	0.05%	0.04%	$722.11M$722,114,035	$37,182,611 37,185,934 PYUSD	722,178,585 PYUSD
112	TrueUSD TUSD	$0.999	0.01%	0.05%	0.03%	$495.09M$495,088,186	$36,654,391 36,692,398 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$0.999	0.00%	0.03%	0.02%	$2.59B$2,591,144,708	$47,922,512 47,969,556 USDE	2,593,688,326 USDe
206	Frax FRAX	$0.9971	0.01%	0.00%	0.00%	$647.52M$647,520,969	$2,923,066 2,931,703 FRAX	649,434,271 FRAX
211	Ondo US Dollar Yield USDY	$1.06	0.03%	0.04%	0.12%	$340.38M$340,381,248	$146,060 138,224 USDY	322,119,848 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.12
	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	$1.01
	Anchored Coins AEURAEUR	$1.11
	EURCEURC	$1.11
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.10
	Celo DollarCUSD	$1.00
	Steem DollarsSBD	$2.57
	EuriteEURI	$1.11
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.77
	EdelcoinEDLC	$1.13
	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	$1.11
	Prisma mkUSDMKUSD	$1.00
	DjedDJED	$1.01
	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	$1.01
	USDP StablecoinUSDP	$1.00
	DOLADOLA	$1.00
	Worldwide USDWUSD	$1.00
	Gyroscope GYDGYD	$1.00
	lisUSDlisUSD	$1.00
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.02
	Brazilian Digital TokenBRZ	$0.18
	Magic Internet MoneyMIM	$1.00
	Fathom DollarFXD	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	CriptodólarUXD	$1.00
	JPY CoinJPYC	$0.01
	XIDRXIDR	$0.00
	dForce USDUSX	$1.00
	XUSDXUSD	$1.00
	USDHUSDH	$0.98
	BounceBit USDBBUSD	$1.00
	MAIMIMATIC	$0.59
	Angle ProtocolEURA	$1.11
	StablR EuroEURR	$1.11
	Decentralized USD (DefiChain)DUSD	$0.03
	Moola Celo USDmCUSD	$0.98
	ZARP StablecoinZARP	$0.06
	Moola Celo EURmCEUR	$1.11
	Inter Stable TokenIST	$1.00
	BiLiraTRYB	$0.03
	Amnis Aptos CoinAMAPT	$6.57
	Meter StableMTR	$0.52
	Tether MXNtMXNt	$0.05
	One CashONC	$0.07
	Overnight DAI+DAI+	$1.00
	CryptoFrancXCHF	$1.19
	wanUSDTWANUSDT	$1.01
	Fantom USDFUSD	$0.62
	JPY Coin v1JPYC	$0.01
	Moremoney USDMONEY	$1.02
	Mad USDMUSD	$0.06
	TORTOR	$0.01
	USNUSN	$0.98
	USD BancorUSDB	$0.12
	YUSD StablecoinYUSD	$0.99
	ParallelPAR	$0.38
	Digix Gold TokenDGX	$54.02
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22
	xDollar StablecoinXUSD	$1.05

Top Stablecoin Tokens by Market Capitalization