Over 300 Stablecoins On CoinGecko, But Are All The Same?
CoinGecko lists 370 stablecoins, which vary significantly in their collateral backing, posing different risks to users.Summary
The proliferation of stablecoins, with CoinGecko listing 370, reflects a rush into the market following clearer regulatory guidance like the US CLARITY Act. However, these stablecoins are not uniform; they are largely categorized by their backing: real-world assets (like fiat or Treasuries, exemplified by USDT and USDC), cryptoassets, or algorithmic structures with no collateral. While fiat-backed stables dominate, the diversity introduces risks, including smart contract vulnerabilities and liquidity shocks, as highlighted by past events like the collapse of Terra's algorithmic stablecoin. For retail users, this variety can be confusing, although the ultimate goal of stablecoins is to digitize the dollar for seamless global money movement, making the underlying mechanism invisible to the end-user.
(Source：BeInCrypto)