James Henry
Well-known member
Stablecoins maintain stability by pegging their value to a reserve asset, like the US dollar or other commodities. These coins are typically backed by collateral or use algorithms to regulate supply and demand. Collateralized stablecoins hold assets in reserve, while algorithmic stablecoins adjust supply automatically to maintain price stability. This approach helps them withstand market fluctuations, providing a safer alternative during volatile conditions.
What are your thoughts on the role of stablecoins in crypto stability? Feel free to share your opinions.
What are your thoughts on the role of stablecoins in crypto stability? Feel free to share your opinions.