Stablecoins are cryptocurrencies pegged to fiat currencies, commodities, or algorithmic reserves to maintain price stability. Leading stablecoins include USDT (Tether), USDC (Circle), and DAI (MakerDAO), which facilitate DeFi lending, cross-border payments, and risk hedging. Investors analyze stablecoin market capitalization, reserve audits, and regulatory policies for market stability. The rise of algorithmic stablecoins, CBDCs (central bank digital currencies), and cross-chain stablecoin liquidity is influencing the evolution of digital payments. Stablecoins serve as a bridge between traditional finance and decentralized economies, ensuring low volatility in volatile markets.
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