In the cryptocurrency world with severe price fluctuations, stablecoins provide a digital asset with stable value, serving as a key bridge connecting traditional finance and the crypto ecosystem. This article will explain the concept of stablecoins in detail and introduce the three most influential stablecoins on the market at present.

Stablecoin Exchange in 2025:

Ouyi okx :

Binance binance:

Huobi htx:

What is a stablecoin?

Stablecoin is a special type of cryptocurrency whose value is "pegged" to a stable asset to maintain the stability of its price. The vast majority of stablecoins choose to peg to fiat currencies such as the US dollar at a 1:1 ratio, which means that the value goal of a stablecoin is to maintain its value at USD 1.

Their main role is to provide a safe haven for the cryptocurrency market. When prices of mainstream cryptocurrencies such as Bitcoin or Ethereum fall sharply, investors can convert assets into stablecoins to avoid risks. At the same time, stablecoins also act as a medium of trading, simplifying the exchange process between different cryptocurrencies and are an indispensable infrastructure in decentralized finance (DeFi) and major exchanges.

The main types of stablecoins

Fiat currency collateral type: This is the most mainstream type. For every stablecoin issued by the issuer, fiat currency of equivalent value (such as USD) will be deposited in its bank reserves. Users can redeem fiat currency at a ratio of 1:1 at any time using stablecoins. The transparency and compliance of these stablecoins are key to their credibility.

Cryptocurrency collateral: This type of stablecoins is supported by other cryptocurrencies (such as Ethereum) as excess collateral. For example, users need to collateralize $150 worth of Ethereum to mint $100 stablecoins to cope with the risks of collateral price fluctuations.

Algorithm type: This type of stablecoins does not rely on any collateral, but automatically adjusts the supply through smart contracts and algorithms to maintain their price stability. This model is designed in complexity and has relatively high risks.

Ranking of the three major stablecoins in the currency circle

Here are the three mainstream stablecoins in the current crypto market ranking by market value and influence.

1. Tether (USDT)

USDT is the world's first stablecoin with the largest market value issued by Tether. It firmly occupies the top spot in the stablecoin market, with unparalleled liquidity and wide acceptance. Almost all cryptocurrency exchanges, including Binance, OKX, Huobi (HTX) and Gate.io, support USDT trading pairs. Despite the controversy over the transparency of its reserves, USDT is still the most commonly used stablecoin in cryptocurrency trading with its first-mover advantage and deep market roots.

2. USD Coin (USDC)

USDC is a stablecoin issued by the Centre alliance jointly established by Coinbase and Circle, and is regarded as USDT's strongest contender. The biggest feature of USDC is its high level of transparency and compliance. Its issuer claims that each USDC is backed by equivalent dollar cash or short-term U.S. Treasury bonds and is regularly audited and published by top accounting firms. This emphasis on transparency has won USDC the trust of a large number of users and institutions, and has led to its rapid growth in usage in the DeFi field and mainstream exchanges (such as Binance, Ouyi, etc.).

3. Dai (DAI)

DAI is the most famous and successful decentralized stablecoin created and managed by the MakerDAO protocol. Unlike USDT and USDC, there is no centralized company or bank account behind DAI. It generates and maintains its 1:1 peg to the US dollar by overstaking other crypto assets such as Ethereum. All operations of DAI are automatically executed on the chain by smart contracts, and their collateral status and system rules are completely open and transparent. This decentralized feature makes it extremely censor-resistant and is highly favored by core users of decentralized finance (DeFi) and can be traded on major decentralized and centralized platforms (such as Gate.io, OKX).

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