Stablecoins 2024: The Complete Guide to Major Projects and Their Features

Why Stablecoins Are Necessary in the Crypto Ecosystem

If you’ve traded cryptocurrencies, you know how volatile the prices of Bitcoin and Ethereum can be within just a few hours. Stablecoins solve this problem by pegging to real assets—usually the US dollar or gold. This means that the value of such tokens remains relatively stable, while traditional crypto assets are subject to significant fluctuations.

The peg works simply: the issuer locks a certain amount of fiat currency and in return creates an equivalent number of tokens. For example, for each USDT, there is a dollar held in reserve. This creates a link between the traditional financial system and the blockchain, allowing trading without the risk of losing funds due to sharp price drops.

History shows, however, that the peg is not always sustainable. Some stablecoins have lost their value when reserve issues or trust in the issuer arose. Despite this, demand for stable tokens continues to grow, and they are becoming a critically important part of the cryptocurrency landscape.

Types of Stablecoins: Two Main Approaches

Fiat-Collateralized Tokens

Most popular stablecoins rely on traditional currency reserves. The company locks in dollars or euros and then issues tokens in an equivalent amount. This method is considered more reliable because each token is backed by a real asset.

The system works linearly: the more fiat currency in reserve, the more tokens can be issued. This ensures price stability at a 1:1 ratio to the pegged currency.

Decentralized Alternatives

The other approach involves using cryptographic mechanisms instead of a central reserve. Such tokens are backed by crypto collateral through smart contracts on the blockchain. This avoids dependence on a single central authority but requires a more complex mechanism to support value.

7 Stablecoins That Dominate the Market in 2024

1. USDT — The Pioneer of Fiat Stablecoins

Tether launched USDT back in 2014, becoming the first company to offer a digital dollar independent of any specific platform. The token combines blockchain technological advantages with the conservativeness of fiat currency.

The peg remains at 1:1, and Tether Limited holds reserves of over $86 billion with obligations of $83.2 billion (as of September 2023). USDT has gained widespread adoption due to low transfer fees across countries and operational transparency.

What makes USDT unique is that it represents a crypto-dollar that can be used globally without banking involvement. This has made it an ideal choice for payments, remittances, and trading on crypto exchanges.

2. USDC — Stablecoin Under Oversight of a Consortium

Circle created USDC in 2018 as an alternative, backed by transparency and collective governance. Its price remains fixed at $1, managed by the Centre consortium, which includes major crypto industry companies.

As of the latest update (January 15, 2026), USDC has a market capitalization of $75.54 billion and a price of $1.00. The token is highly liquid and available on nearly all centralized and decentralized exchanges.

The advantage of USDC lies in its centralized management, which provides closer control over standards. The token is compatible with the Ethereum network and the ERC-20 standard, expanding its use in decentralized applications.

3. TUSD — Transparent Stablecoin

TrueUSD was launched in 2018 through the TrustToken and PrimeTrust initiative. The main idea was to address the transparency issues in the stablecoin market.

TUSD differs in that all user funds are handled on independent escrow accounts inaccessible to the issuer itself. This creates an additional layer of protection against misuse of funds. The price is fixed at $1.00, and the current market cap reaches $494.42 million.

Another distinctive feature is that TUSD regularly verifies its reserves through independent real-time audits. This provides holders with additional confidence in the token’s reliability.

4. BUSD — Stablecoin from a Major Exchange

Binance, together with Paxos Trust, launched BUSD as a native stablecoin of the ecosystem. The peg is 1:1 to the dollar, and the issuance and burning of tokens are managed by Paxos.

BUSD is built on the Ethereum blockchain but also supports the BEP-2 standard on Binance Chain. The token supply is not limited and is determined by user demand.

It is important to note that in November 2023, Binance announced the discontinuation of BUSD support, but its market share was quickly taken over by other coins. This exemplifies how market concentration can change even for major players.

5. DAI — The Only Decentralized Stablecoin

DAI takes a completely different approach. Launched in 2018 by the decentralized autonomous organization MakerDAO, DAI is not controlled by a central issuer.

The token is generated via the Maker Protocol on Ethereum. Users lock crypto assets (Bitcoin or Ethereum) into smart contracts called Maker Vaults and receive DAI in return. As of now, DAI’s market capitalization is $4.44 billion with a price of $1.00.

DAI has a soft peg to the dollar, maintained through algorithmic mechanisms rather than centralized reserves. This makes it a unique alternative for those who distrust central authorities.

6. eUSD and peUSD — Next-Generation Interest-Bearing Stablecoins

Lybra Finance introduced an innovative approach by creating stablecoins that generate interest income. eUSD and peUSD are backed by liquidity staking tokens (LST), allowing holders to earn on their savings.

When a user deposits native cryptocurrency into the protocol via a Proof of Stake mechanism, they receive LST. These tokens are then used as collateral to issue interest-bearing stablecoins.

This is a revolutionary approach, as most stablecoins simply preserve value but do not generate income. eUSD and peUSD enable investors to hold a stable asset while earning an attractive interest rate on their capital.

7. Synthetic USD — Hedging Through Stability

Synthetic USD is aimed at users seeking dollar stability without interacting with traditional financial institutions.

The mechanism is based on a hedging principle. Suppose you open a $100 position in Bitcoin via a derivative platform. If Bitcoin’s price rises, the hedging value decreases by the same amount, and vice versa. The overall position remains stable.

Galoy’s platform offers the Stablesats feature, allowing users to access stable USD prices via Bitcoin without needing to convert assets directly.

Where Stablecoins Find Application

Decentralized Finance as the Main Market

The DeFi sector actively uses stablecoins as the primary currency for settlements. Lending and borrowing platforms need stable collateral, which is why stablecoins have become a key part of this ecosystem.

Unlike volatile BTC and ETH, stablecoins maintain their purchasing power, making them ideal tools for collateralization and executing trading strategies without liquidation risk due to price drops.

Dollarization of Portfolios for Emerging Markets

Citizens of countries with unstable currencies often use stablecoins as a way to hedge against inflation. If the local currency loses purchasing power, stablecoins allow preserving asset value in dollar terms.

Moreover, stablecoins provide access to the global economy through cross-border transfers with minimal fees. Traditional banking systems are often prohibitively expensive for residents of developing countries, and blockchain solves this problem.

Risks and Challenges

Despite their advantages, stablecoins are not without risks. The first and main one is dependence on the reliability of the issuer and the underlying asset. If the reserve asset’s value drops or the company faces legal issues, the peg may be lost.

The second risk is regulatory uncertainty. Authorities in different countries are just beginning to develop policies regarding stablecoins, which could lead to unexpected restrictions or changes.

The third challenge is network congestion. During high activity, delays can deprive users of instant access to funds, despite the theoretical benefits of blockchain.

Bluechip Agency publishes security ratings of existing stablecoins, helping investors assess the risk of each token.

How to Acquire Stablecoins

The easiest way is to buy stablecoins on a centralized exchange with fiat currency. The process requires verification but takes minimal time.

Alternatively, you can exchange other cryptocurrencies like Bitcoin or Ethereum for stablecoins on the same centralized platform.

For a more private approach, decentralized exchanges and P2P marketplaces are suitable. Many users prefer DEX because they do not require transferring assets to a third party and allow maintaining control over private keys.

Conclusion: Stablecoins as a Bridge Between Two Worlds

Stablecoins have secured a firm place in the crypto ecosystem, serving as a bridge between traditional finance and decentralized applications. Their stability, low fees, and global accessibility make them attractive to traders, investors, and residents of countries with unstable currencies.

Various options are available on the market—from traditional fiat-backed tokens to innovative decentralized solutions. Each has its advantages and risks. As regulatory frameworks and technology evolve, we will likely see even more diverse stablecoin options and expanded use cases.

Before investing in any stablecoin, conduct thorough research, assess the reliability of the issuer, and understand the risks associated with the specific token.