@bubblesbbiab
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. There are three main types: fiat-collateralized (backed by reserves of real-world assets), crypto-collateralized (backed by other cryptocurrencies, often over-collateralized to account for volatility), and algorithmic (maintaining stability through algorithms that control supply). Stablecoins play a crucial role in the crypto ecosystem by providing a less volatile alternative for trading and as a store of value, making them useful for remittances, decentralized finance (DeFi) applications, and as a medium of exchange. They bridge the gap between traditional finance and crypto markets while also facilitating more stable transactions in volatile conditions.
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