What are Stablecoins?

Cryptocurrencies that pursue price stability

업데이트: 2026.01.19

Basic Concept of Stablecoins

Stablecoin is a cryptocurrency that minimizes price volatility, mostly designed to be fixed at $1 USD. The purpose is to maintain stable value away from cryptocurrency market volatility.

💰 Price Fixation: Stablecoins are generally fixed at 1 USD, used as an intermediate medium in cryptocurrency trading or as a store of value.

Major Stablecoins

Top Market Cap Stablecoins

Representatively, USDT (Tether), USDC (USD Coin), DAI exist. These account for a significant portion of the total cryptocurrency market capitalization.

Uses of Stablecoins

Trading Medium

Used as an intermediate medium when trading between cryptocurrencies. Instead of converting to fiat currency, stablecoins are used to move funds between exchanges.

Value Storage

Used to preserve value during market volatility. When cryptocurrency prices are unstable, converting to stablecoins can protect asset value.

Types of Stablecoins

Fiat-Collateralized

Backed by fiat currency or assets like government bonds. USDT and USDC are representative examples.

Crypto-Collateralized

Backed by other cryptocurrencies. DAI is a representative example.

Algorithmic

Maintains price through algorithms without collateral. Many have failed, so caution is needed.

⚠️ Issuance Risk: Stablecoins have issuer risk. If the issuer goes bankrupt or cannot maintain the peg, the value can drop significantly. It is important to check the issuer's transparency and collateral status.

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Price Stability

Maintains value fixed at $1, used as trading medium and value storage

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Issuance Risk

Issuer bankruptcy or peg failure risk exists, transparency check needed

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Fast Transfer

Faster and lower fees than bank transfers, used for fund movement