@aheadhairmedia
In highly volatile markets, stablecoins often function as a capital preservation tool, allowing investors to temporarily step out of risk assets without fully exiting the crypto ecosystem. By reallocating a portion of a portfolio into stablecoins during periods of extreme price swings, investors can reduce drawdowns while maintaining liquidity and readiness to re-enter positions quickly when risk-reward conditions improve. In asset allocation terms, stablecoins resemble a cash equivalent with faster settlement and broader on-chain usability.
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