When the cryptocurrency market experiences a general rise or fall, stablecoins usually perform differently. In a bull market, stablecoins may see a relatively stable value, and their trading volume may decrease as investors shift to riskier cryptocurrencies for higher returns. However, in a bear market, stablecoins become more attractive. Their value remains relatively stable as they are pegged to fiat currencies like the US dollar. They act as a safe - haven asset, with investors flocking to them to preserve capital. For example, during a market crash, the trading volume of stablecoins like Tether (USDT) and USD Coin (USDC) often surges as investors move their funds out of volatile cryptocurrencies into stablecoins, thus stabilizing their portfolios and providing liquidity in the overall cryptocurrency market during turbulent times.