Stablecoins Explained – Why They are Taking Over Crypto
The Quiet Shift in Digital Payments Bitcoin makes headlines with wild price swings and Ethereum drives the DeFi boom but there’s another kind of crypto quietly becoming the backbone of digital finance – stablecoins. They already handle over 8 trillion dollars in yearly transactions spread across a billion transfers and are now essential to the crypto economy. That makes them one of the most practical tools in the crypto world today. So what exactly are stablecoins and why are they becoming so important : What Are Stablecoins Stablecoins are like digital dollars. Their main purpose is to stay steady in value unlike coins such as Bitcoin or Ethereum that rise and fall sharply. Most stablecoins are tied to the US dollar though some are connected to the Euro or even a mix of different assets. There are three main types of stablecoins: Fiat backed – supported by real money in banks like USDT (USD Tether) and USDC (USD Coin) Crypto backed – supported by othe...