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	0.02%	0.07%	0.03%	$138.37B$138,369,029,039	$283,655,289,305 283,531,994,187 USDT	138,308,884,820 USDT
8	USDC USDC	$1.00	0.00%	0.00%	0.01%	$40.69B$40,690,006,978	$17,971,532,631 17,970,566,656 USDC	40,687,819,876 USDC
27	Ethena USDe USDe	$1.00	0.00%	0.05%	0.05%	$5.55B$5,550,352,410	$129,858,036 129,641,294 USDE	5,541,088,503 USDe
28	Dai DAI	$0.9998	0.01%	0.00%	0.00%	$5.36B$5,364,254,342	$185,029,971 185,068,892 DAI	5,365,382,703 DAI
64	First Digital USD FDUSD	$0.9997	0.11%	0.11%	0.15%	$1.79B$1,787,501,074	$12,740,749,767 12,744,772,397 FDUSD	1,788,065,441 FDUSD
126	USDD USDD	$0.9991	0.03%	0.02%	0.17%	$740.24M$740,242,178	$4,675,796 4,680,160 USDD	740,932,981 USDD
161	PayPal USD PYUSD	$0.9996	0.01%	0.06%	0.00%	$503.37M$503,365,334	$26,028,814 26,039,327 PYUSD	503,568,638 PYUSD
162	TrueUSD TUSD	$1.01	0.04%	0.64%	1.03%	$502.03M$502,030,776	$74,553,741 73,598,973 TUSD	495,601,553 TUSD
206	Usual USD USD0	$1.00	0.02%	0.01%	0.03%	$683.94M$683,935,927	$61,995,908 61,957,483 USD0	683,512,019 USD0
208	Frax FRAX	$0.9952	0.04%	0.05%	0.00%	$646.35M$646,345,260	$20,742,537 20,841,643 FRAX	649,433,438 FRAX
	Ondo US Dollar YieldUSDY	$1.07
	USDJUSDJ	$1.11
	USDBUSDB	$1.00
	STASIS EUROEURS	$1.05
	TerraClassicUSDUSTC	$0.02
	Pax DollarUSDP	$1.00
	EURCEURC	$1.06
	BUSDBUSD	$1.00
	Gemini DollarGUSD	$1.00
	USDX [Kava]USDX	$0.60
	Liquity USDLUSD	$1.00
	Venus BUSDvBUSD	$0.02
	Anchored Coins AEURAEUR	$1.05
	Lift DollarUSDL	$1.00
	Steem DollarsSBD	$3.47
	XSGDXSGD	$0.75
	Tether EURtEURt	$1.05
	EuriteEURI	$1.05
	Celo DollarCUSD	$1.00
	Global DollarUSDG	$1.00
	Reserve DollarRSV	$1.00
	ZUSDZUSD	$1.00
	Rupiah TokenIDRT	$0.00
	EdelcoinEDLC	$0.80
	Verified USDUSDV	$1.00
	sUSDSUSD	$0.99
	GYENGYEN	$0.01
	BIDRBIDR	$0.00
	MNEEMNEE	$1.00
	VNX Swiss FrancVCHF	$1.14
	HUSDHUSD	$0.05
	Fei USDFEI	$0.97
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	Celo EuroCEUR	$1.05
	VNX EuroVEUR	$1.05
	Prisma mkUSDMKUSD	$0.99
	VaiVAI	$1.00
	DjedDJED	$0.97
	Sperax USDUSDs	$1.01
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	Savings DaiSDAI	$1.12
	Overnight.fi USD+ (Base)USD+	$1.01
	AUSDAUSD	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	DOLADOLA	$0.99
	lisUSDlisUSD	$0.99
	Worldwide USDWUSD	$1.00
	GHOGHO	$1.00
	USDP StablecoinUSDP	$1.00
	Gyroscope GYDGYD	$1.00
	Overnight.fi USD+ (Arbitrum)USD+	$1.00
	Fathom DollarFXD	$1.00
	Overnight.fi USD+ (Optimism)USD+	$1.00
	Magic Internet MoneyMIM	$1.00
	Overnight.fi USD+ (Blast)USD+	$1.00
	XUSDXUSD	$1.00
	usdx.money (USDX)USDX	$1.00
	xDAIxDAI	$0.97
	ZedxionUSDZ	$1.00
	Angle ProtocolEURA	$1.05
	CriptodólarUXD	$1.00
	MAIMIMATIC	$0.52
	Amnis Aptos CoinAMAPT	$11.36
	BounceBit USDBBUSD	$1.00
	USDHUSDH	$0.96
	Inter Stable TokenIST	$1.00
	Moola Celo USDmCUSD	$1.00
	XIDRXIDR	$0.00
	Decentralized USD (DefiChain)DUSD	$0.11
	Quantoz USDQUSDQ	$1.00
	Brazilian Digital TokenBRZ	$0.16
	JPY CoinJPYC	$0.01
	ZARP StablecoinZARP	$0.04
	Quantoz EURQEURQ	$1.03
	BiLiraTRYB	$0.03
	StablR EuroEURR	$1.05
	dForce USDUSX	$1.00
	Moola Celo EURmCEUR	$1.05
	Tether MXNtMXNt	$0.05
	wanUSDTWANUSDT	$0.99
	Meter StableMTR	$0.66
	CryptoFrancXCHF	$0.22
	One CashONC	$0.07
	Mad USDMUSD	$0.03
	JPY Coin v1JPYC	$0.01
	TORTOR	$0.01
	Fantom USDFUSD	$0.37

Top Stablecoin Tokens by Market Capitalization