Blockchain Glossary

StableCoin

Published on August 28th, 2021

Stable coins aim to bridge the gap between cryptocurrencies’ benefits and the stable nature offered by fiat currencies. It is a crypto token with a value pegged to the price of a national currency to combat its volatility.

Now, the question is, why do we need a stable coin.

Though cryptocurrencies are global currencies, coins like Bitcoin and Ether are volatile. The price of Bitcoin raised from $1000 to $20000 during 2017. Since it is not sustainable, users and investors require more stability in the market.