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%	0.02%	0.00%	$118.18B$118,182,460,649	$34,275,711,514 34,279,460,338 USDT	118,195,386,571 USDT
6	USDC USDC	$0.9999	0.01%	0.01%	0.01%	$34.95B$34,952,921,825	$3,240,027,171 3,240,267,492 USDC	34,955,514,376 USDC
17	Dai DAI	$1.00	0.00%	0.01%	0.01%	$5.37B$5,365,789,929	$74,206,278 74,200,646 DAI	5,365,382,703 DAI
30	First Digital USD FDUSD	$0.9984	0.02%	0.03%	0.06%	$2.56B$2,560,691,864	$2,144,184,939 2,147,518,149 FDUSD	2,564,672,548 FDUSD
65	PayPal USD PYUSD	$0.9997	0.01%	0.02%	0.01%	$884.71M$884,706,489	$14,988,019 14,992,031 PYUSD	884,943,307 PYUSD
76	USDD USDD	$0.9992	0.02%	0.01%	0.07%	$738.2M$738,201,626	$2,281,697 2,283,585 USDD	738,812,289 USDD
104	TrueUSD TUSD	$0.9982	0.01%	0.05%	0.08%	$494.69M$494,694,637	$86,596,698 86,755,454 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$0.9991	0.01%	0.03%	0.03%	$2.69B$2,691,347,103	$27,088,576 27,113,703 USDE	2,693,843,605 USDe
206	Frax FRAX	$0.9972	0.01%	0.02%	0.08%	$647.62M$647,619,161	$3,195,763 3,204,720 FRAX	649,434,271 FRAX
208	Ondo US Dollar Yield USDY	$1.05	0.04%	0.34%	0.25%	$339.45M$339,452,203	$104,002 98,662 USDY	322,024,197 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.12
	STASIS EUROEURS	$1.11
	Pax DollarUSDP	$1.00
	Gemini DollarGUSD	$1.00
	TerraClassicUSDUSTC	$0.02
	USDX [Kava]USDX	$0.77
	BUSDBUSD	$1.00
	Liquity USDLUSD	$1.00
	Anchored Coins AEURAEUR	$1.11
	Venus BUSDvBUSD	$0.02
	EURCEURC	$1.10
	Lift DollarUSDL	$1.00
	Tether EURtEURt	$1.08
	Celo DollarCUSD	$1.00
	Steem DollarsSBD	$2.34
	Reserve DollarRSV	$1.00
	EuriteEURI	$1.11
	XSGDXSGD	$0.76
	sUSDSUSD	$0.99
	EdelcoinEDLC	$1.13
	USDKUSDK	$0.81
	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	$1.00
	Venus DAIvDAI	$0.02
	Origin DollarOUSD	$1.00
	Celo EuroCEUR	$1.11
	VaiVAI	$1.00
	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
	XUSDXUSD	$1.00
	USDP StablecoinUSDP	$1.00
	GHOGHO	$1.01
	lisUSDlisUSD	$1.00
	Worldwide USDWUSD	$1.00
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.01
	Gyroscope GYDGYD	$1.00
	DOLADOLA	$1.00
	Fathom DollarFXD	$1.00
	CriptodólarUXD	$1.00
	Brazilian Digital TokenBRZ	$0.18
	XIDRXIDR	$0.00
	Magic Internet MoneyMIM	$1.00
	USDHUSDH	$0.98
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	JPY CoinJPYC	$0.01
	Angle ProtocolEURA	$1.11
	BounceBit USDBBUSD	$0.99
	Decentralized USD (DefiChain)DUSD	$0.03
	Inter Stable TokenIST	$1.00
	MAIMIMATIC	$0.76
	Overnight DAI+DAI+	$1.00
	Moola Celo USDmCUSD	$0.98
	ZARP StablecoinZARP	$0.05
	Amnis Aptos CoinAMAPT	$5.77
	dForce USDUSX	$1.00
	Moola Celo EURmCEUR	$1.11
	StablR EuroEURR	$1.11
	Meter StableMTR	$0.50
	Tether MXNtMXNt	$0.05
	BiLiraTRYB	$0.03
	wanUSDTWANUSDT	$1.01
	Mad USDMUSD	$0.05
	CryptoFrancXCHF	$1.14
	One CashONC	$0.07
	TORTOR	$0.01
	JPY Coin v1JPYC	$0.01
	USNUSN	$0.98
	xDollar StablecoinXUSD	$1.06
	Moremoney USDMONEY	$1.01
	USD BancorUSDB	$0.11
	Fantom USDFUSD	$0.40
	ParallelPAR	$0.38
	Digix Gold TokenDGX	$53.24
	Karatgold CoinKBC	$0.00
	BRCP TOKENBRCP	$0.22

Top Stablecoin Tokens by Market Capitalization