Stablecoins can serve as a hedge in high-volatility markets due to their pegged value, typically tied to assets like the USD, reducing exposure to crypto price swings. They offer stability for traders seeking to park funds during market turbulence without exiting to fiat, which may incur fees or delays. However, risks remain: peg instability, as seen in past depegging events, counterparty risk from issuers, and regulatory uncertainty can undermine their reliability. Algorithmic stablecoins, in particular, may face higher volatility risks. While useful for short-term shelter, stablecoins aren't foolproof, and market conditions or issuer transparency can impact their effectiveness as a safe haven. Always assess the specific stablecoin’s backing and risks before use.