Stablecoin Basics

In the ever-evolving cryptocurrency landscape, stablecoins have emerged as a crucial bridge between traditional finance and the digital asset world. The stablecoin market has experienced remarkable growth, reaching approximately $159 billion in market capitalization by 2024. Among these digital assets, cryptocolateralized stablecoins represent a unique and innovative approach to maintaining price stability in the volatile

In a cryptocurrency market known for its dramatic price swings, where assets can gain or lose significant value within hours, stability becomes a precious commodity. Bitcoin’s notorious volatility, while attractive to some traders, poses significant challenges for everyday transactions and reliable store of value. This is where fiat-backed stablecoins enter the picture, offering a bridge

In May 2022, the cryptocurrency world witnessed one of its most dramatic failures. TerraUSD (UST), once the fourth-largest stablecoin with an $18 billion market capitalization, crashed spectacularly. Within days, its value plummeted from $1 to mere pennies, triggering a catastrophic $42 billion loss that sent shockwaves through the entire crypto ecosystem. The collapse began with