Ranking
Categories
Market Overview
Historical Snapshots
Crypto ETFs
Token unlocks
Yield
Trending
Upcoming
Recently Added
Gainers & Losers
Most Visited
Community Sentiment
Chain Ranking
Overall NFT Stats
Upcoming Sales
New Pairs
Trending Pairs
Gainers & Losers
Community Votes
Top TradersExchanges
Centralized Exchanges
Spot
DerivativesDecentralized Exchanges
Spot
Derivatives
Feeds
Topics
Lives
Articles
Converter
Newsletter
CMC Labs
Telegram Bot
Advertise
Crypto API
Site Widgets
Airdrops
Diamond Rewards
Learn & Earn
ICO Calendar
Events Calendar
Academy
Research
Videos
GlossaryTop Stablecoin Tokens by Market Capitalization
This page lists the most valuable stablecoins. They are listed by market capitalization with the largest first and then descending in order.
100
Frequently Asked Questions (FAQ)
How do Stablecoins work?
Stablecoins are a type of cryptocurrency that are designed to minimize the volatility often associated with cryptocurrencies. They achieve this stability by being pegged to a reserve of assets. These assets can be a variety of things, such as a specific amount of a fiat currency like the dollar or euro, or other types of assets like gold or other cryptocurrencies. The value of a stablecoin is directly linked to the value of these underlying assets. If the value of the assets changes, so does the value of the stablecoin. This mechanism helps to maintain a stable value, hence the name 'stablecoin'.
What are the different types of Stablecoins?
There are primarily three types of stablecoins: fiat-collateralized, crypto-collateralized, and non-collateralized. Fiat-collateralized stablecoins are backed by fiat currencies like the dollar or euro. Each stablecoin is equivalent to a specific amount of the fiat currency, which is held in reserve. Crypto-collateralized stablecoins are backed by other cryptocurrencies. Due to the volatility of cryptocurrencies, these stablecoins are often over-collateralized to absorb large price swings. Non-collateralized stablecoins are not backed by any reserve. Instead, they use a working mechanism, such as a smart contract, to maintain their value.
What are the advantages of Stablecoins?
Stablecoins offer several advantages. Firstly, they provide stability in the highly volatile cryptocurrency market. This makes them a safe haven for investors during turbulent market conditions. Secondly, they enable the benefits of cryptocurrencies, such as fast and cheap transactions, while mitigating the risk of price fluctuations. Thirdly, they can be used as a medium of exchange, unit of account, and store of value, just like traditional money. Lastly, they can also facilitate cross-border transactions and remittances, providing a stable and efficient means of transferring value across borders.
What are the disadvantages of Stablecoins?
Despite their advantages, stablecoins also have some disadvantages. One of the main concerns is the need for trust in the entity that holds the reserve assets. If this entity is not trustworthy, the stablecoin could lose its value. Additionally, fiat-collateralized stablecoins are subject to the same inflation and monetary policy issues as their underlying fiat currencies. Crypto-collateralized stablecoins, on the other hand, are exposed to the volatility of the underlying cryptocurrencies. Lastly, non-collateralized stablecoins rely on complex algorithms, which may not always work as expected, leading to instability.
Stay on top of crypto.
All the time, any time.Please keep me updated by email with the latest crypto news, research findings, reward programs, event updates, coin listings and more information from CoinMarketCap.