In the dynamic realm of cryptocurrency, stability is the beacon amidst volatility. Enter stablecoins, designed to anchor digital assets to real-world value. Among them, crypto-backed stablecoins once promised a revolution. Yet, as time unveils, questions linger. This dashboard embarks on a journey, pitting crypto-backed stablecoins against the stalwarts, USDT and USDC. Through data-driven insights, we aim to uncover which stablecoin reigns supreme in adoption, activity, and user engagement. Join us in this exploration of stability, where contenders vie for the crown in the ever-evolving world of digital finance.

Crypto-backed stablecoins are losing popularity due to limitations in areas like capital efficiency and liquidity. Fiat-backed stablecoins dominate the market. Centralized options like $USDT and $USDC are preferred. Stablecoin success depends on key functions like exchangeability and peg stability. Specific stablecoins face challenges, indicating a need for improvement. The future of crypto-backed stablecoins is uncertain.

This dashboard expands upon Cesar's exploration, comparing the activity and usage of crypto-backed stablecoins (DAI and FRAX) within Avalanche chain with industry stalwarts USDT and USDC. Through detailed data and visualizations, we aim to provide a comprehensive perspective on the stability landscape in the world of digital finance. Join us as we navigate the complexities and considerations of stablecoin adoption and usage.

Stablecoins

A stablecoin is a type of cryptocurrency designed to have a stable value, typically by pegging it to a reserve asset like a fiat currency (e.g., USD, EUR) or a commodity (e.g., gold). Unlike other cryptocurrencies like Bitcoin or Ethereum, which can experience significant price fluctuations, stablecoins aim to minimize volatility, making them more suitable for everyday transactions and as a store of value.

There are several types of stablecoins:

• Fiat-Collateralized Stablecoins: These stablecoins are backed by a reserve of fiat currency, like USD, held in a bank account. For example, for every stablecoin in circulation, there is an equivalent amount of actual currency held in a bank. (USDT, USDC, TUSD,...)

• Crypto-Collateralized Stablecoins: These stablecoins are backed by a reserve of other cryptocurrencies, often held in a smart contract. These might use algorithms and smart contracts to maintain stability. (DAI, FRAX, sUSD,...)

• Commodity-Collateralized Stablecoins: These stablecoins are backed by a reserve of commodities like gold or other valuable assets. (AGX, AUX, ...)

Stablecoins have gained popularity in the cryptocurrency space because they can provide a level of price stability that is essential for various financial applications, such as trading, lending, and remittances, without entirely leaving the blockchain ecosystem. They offer a bridge between the traditional financial world and the decentralized world of cryptocurrencies.

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