Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to the US dollar. They exist in three main types: fiat-backed (USDT, USDC), crypto-backed (DAI), and algorithmic — the latter having a catastrophic track record including the $40B Terra collapse.
2014
Tether launches as Realcoin — first major fiat-backed stablecoin
2018
USDC launches, backed by Circle and Coinbase
2020
DAI and crypto-backed stablecoins grow as DeFi explodes
2022
TerraUSD collapse destroys $40B and triggers crypto contagion
2023
US Congress begins stablecoin legislation debate
Trading pairs, DeFi liquidity, remittances, on-chain payments, yield generation
💡 Did You Know
The total supply of USD stablecoins briefly exceeded $180 billion in 2022 — more than the M1 money supply of many small nations
⚠ Controversies & Red Flags
Algorithmic stablecoins have a catastrophic track record. Terra's UST wiped out $40B. Iron Finance, Basis Cash, and others also collapsed to zero.