Stablecoins are cryptocurrencies created to decrease the volatility of the coin’s price, relative to some “stable” asset or collection of assets. A stablecoin can be pegged to a currency or exchange-traded commodities.
Stablecoins vary by the underlying asset to which they are attached and can be divided into Crypto, Fiat, or Asset-backed stablecoins.
Stablecoins have become popular in the cryptocurrency industry because they don’t have the wild volatility associated with other crypto assets such as Bitcoin. Stablecoin prices are often pegged at a one-to-one ratio to a stable asset such as the U.S. dollar or Gold, which is held in reserve as collateral.
DappRadar investigates and takes a closer look at the top 5 stablecoins in 2020.
