L'INFORMATEUR CRYPTOStablecoin: definition
A stablecoin is a crypto whose value tracks a currency, usually the dollar (USDT, USDC).
Definition
Stablecoins (Tether's USDT, Circle's USDC…) are worth about $1. They're used as a medium of exchange on exchanges and as a safe haven during drops.
Why track their market cap
The total stablecoin market cap represents liquidity ready to be invested. When it grows, fresh money is entering the ecosystem, which often supports the market.
Frequently asked questions
Can a stablecoin lose its peg?
Yes, when there are doubts about its reserves or in a panic (a “depeg”): it has happened to several stablecoins, especially algorithmic ones.