In 2025, stablecoins reach a new level: which type to choose?

The numbers speak for themselves: the market capitalization of stablecoins has exceeded $212 billion, and there are about 200 different variants in circulation. But not all of them are the same — and choosing the wrong one can be costly.

Four types of stablecoins: what's the difference?

1. Fiat reserves (USDT, USDC, RLUSD)

• The simplest: the issuer holds dollars, you receive a token 1:1
• Risk: trust in the company + regulatory uncertainty
• But this type dominates — USDT alone has a market capitalization of $140+ billion.

2. Commodity Reserves (PAX Gold, Tether Gold)

• A digital way to hold gold without a safe
• Problem: liquidity during conversion and storage fees

3. Crypto-backed (DAI, sUSD)

• Decentralized, but require excessive collateral (150$ for a 100$ token)
• Risk: if crypto falls — you have liquidation

4. Algorithmic (Ampleforth, Frax)

• Sound like magic, until the time… UST fell to $0 in 2022
• Lessons learned: a clean algorithm without collateral is Russian roulette

Top-5 stablecoins on the radar

Why is all this materializing right now?

• BTC is storming $100k → people are protecting profits with stablecoins
• DeFi is exploding → stablecoins as the foundation for loans/deposits
• Cross-border payments → migrants send money via USDT cheaper than through banks
• Banking invisibility → people without bank accounts use stablecoins as money

Main risks (don't ignore)

⚠️ Regulation: governments are tightening the screws — they may ban it one day. ⚠️ Technical Dory: contract hacks, code bugs ⚠️ Loss of Peg: if the issuer does not hold reserves — the token will simply fall

Conclusion

Fiat stablecoins (USDT/USDC) are the kings, but use them cautiously due to regulation. USDe is interesting for income, DAI for decentralization. Algorithmic ones are speculation, and a cool mind is needed ahead.

Choose based on your needs: trading? USDT/USDC. DeFi farmer? DAI. Income? USDe. Principles of decentralization? DAI.