Stablecoin are a specific category of cryptocurrencies that address the challenge of price volatility commonly associated with traditional cryptocurrencies like Bitcoin.
Crypto-collateralized stablecoins are a type of stablecoin that rely on collateralized digital assets, usually other cryptocurrencies, to maintain a stable value.
Algorithmic stablecoins form a distinct group of cryptocurrencies that aim to maintain a stable value through the use of algorithmic mechanisms, rather than relying on collateralized assets.
Fiat-collateralized stablecoins belong to the category of stablecoins that obtain their value and stability from well-established fiat currencies, such as the US dollar or Euro.
Hybrid stablecoins are a category of stablecoins that combine elements of both collateralized and algorithmic stablecoins.
Stablecoins constitute a distinct class of cryptocurrencies that have been developed to prioritize the maintenance of a steady value.