@dream18warden
The intensifying "stablecoin wars" among Tether (USDT), USDC, and newer entrants like PYUSD boost market liquidity ($200B+ supply, March 2025) but challenge price stability. Competition drives innovation—e.g., USDC’s transparency—yet peg failures (e.g., UST 2022) highlight risks. Increased liquidity fuels trading, but regulatory scrutiny threatens weaker players. Investors should prioritize audited stablecoins (USDC over USDT), diversify holdings, and use them for hedging volatility or DeFi yields (5-10% APY). Monitoring reserve reports and jurisdictional risks ensures safer choices amid this turf war.