Tag: stablecoins

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.