Fiat-Backed
Fiat-backed stablecoins offer stability and reliability, directly pegged to traditional currencies.
Top gainers this week
Top losers this week
$USDC +97 places this week
Up 35 places this week, $USR is gaining ground
$USDP +32 places this week
$PUMPUSD sank to a 7 gem score this week
A standout this week: $USDC reached a gem score of 78
$USDT slipped from the category leaders this week
156 tokens rose and 48 fell this week
Up 107 places this month, $USDT.z is gaining ground
@radkoGovernance+3•18Can't wait for $BUIDL to actively trade on Uniswap $UNI
@panteoGovernance+3•13The noise around $USDe obscures its actual engineering. $ENA is tackling a core DeFi problem: generating sustainable, scalable, censorship-resistant yield on a synthetic dollar. They hedge derivatives to manage delta, a complex but potentially robust model.
Most fixate on the risks, ignoring the friction this solves for capital efficiency. Its long-term impact on stablecoin architecture is underestimated, currently mispriced.
@KingInTheNorthUSD•6$USDT is a gem!
The alpha and omega of stable coins- @KingInTheNorthUSD•3
I want to buy some $USDt but a quick question for all, will USDT go beyond $1?
Frequently asked questions
How has Fiat-Backed performed recently?
The Fiat-Backed category shows mixed activity over the past month. Over a 30-day window, 174 tokens climbed, outpacing the 30 tokens that fell. Notably, Tether USD Bridged ZED20 (USDT.z) recorded a significant 225.5% score percentage increase, making it a top climber. Other strong 30-day climbers include Axelar Wrapped USDC (axlUSDC) with a 50.4% increase and GDollar (GDLR) with a 131.3% increase. However, Stables Labs USDX (USDX) on both Arbitrum and Ethereum experienced significant declines, falling by 48.9% and 48.8% respectively. Looking at the shorter 7-day period, 154 tokens were up, while 50 were down. Aave Ethereum USDT (aEthUSDT) was a strong 7-day climber with a 102.9% score percentage increase, and Tether USD (USDT) on the Polygon network also saw a 100.3% increase. In contrast, Base Dollar (BD) dropped by 55.8% and Goat Bucks (GUSD) by 58.7% over the last 7 days. USD Coin (USDC) from both Arbitrum and Ethereum entered the top-k over 30 days, while Dai Stablecoin (DAI) and Tether USD (USDT) on the BNB Smart Chain exited the top-k in the same period, with Tether USD (USDT) on BNB also exiting the top-k in the 7-day window.
What are fiat-backed stablecoins?
Fiat-backed stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a specific fiat currency, such as the US dollar or Euro. This peg is typically achieved by holding an equivalent amount of the underlying fiat currency in reserve.
How do fiat-backed stablecoins maintain their peg?
They maintain their peg by holding reserves of the corresponding fiat currency, or assets easily convertible to it, in a 1:1 ratio. Audits are often conducted to verify these reserves.
What are the benefits of using fiat-backed stablecoins?
Benefits include price stability, making them suitable for transactions, remittances, and as a safe haven during cryptocurrency market volatility. They bridge the gap between traditional finance and the crypto world.
Are fiat-backed stablecoins regulated?
The regulatory landscape for fiat-backed stablecoins is evolving globally. Some jurisdictions have introduced specific regulations, while others are still developing frameworks. The level of regulation can vary depending on the issuer and the jurisdiction.
What are the risks associated with fiat-backed stablecoins?
Risks can include the transparency and auditability of reserves, the potential for regulatory changes, counterparty risk if the issuer defaults, and smart contract risks if the stablecoin is issued on a blockchain.