The Complete Guide to the 2026 Stebol Coin Market: List of Mainstream Projects and Selection Tips

The rapidly growing stablecoin market in the cryptocurrency world has surpassed a market capitalization of $200 billion, with approximately 200 projects listed on CoinMarketCap. For investors and users, understanding the overall market is essential. This article explains what stablecoins are, the different types, and provides a list of actual projects. In the highly volatile crypto market, stablecoins are positioned as an important asset class following Bitcoin and Ethereum.

Basic Knowledge of Stablecoins: Why Has the Market Size Surpassed $200 Billion?

Stablecoins are digital assets that maintain a stable value by pegging to external assets. They are linked to fiat currencies like the US dollar or euro, commodities such as gold, or other financial instruments.

The main goal of developing stablecoins is to address the issues associated with traditional cryptocurrencies. Assets like Bitcoin and Ethereum are highly volatile and unsuitable for daily transactions. Stablecoins, on the other hand, combine efficiency, transparency, and security while providing price stability.

The rapid expansion of the market is due to several factors. Recognized practical values include lowering costs for international remittances, the proliferation of decentralized finance (DeFi) platforms, and providing financial access to unbanked populations. According to Chainalysis data, trading activity in stablecoins has reached levels second only to Bitcoin, especially with notable usage in the Asia-Pacific region.

How Stablecoins Work and How They Maintain Stability

The stability of stablecoins is not accidental but a result of deliberate design. Different projects adopt various mechanisms to maintain their pegs.

The most common approach is collateralized. For each issued stablecoin, corresponding assets are held as reserves, providing a direct value correlation. For example, a 1:1 peg with the US dollar is typical, where one stablecoin is backed by one dollar in reserve.

Algorithmic stablecoins take a different approach. They dynamically adjust supply via smart contract protocols, issuing or burning tokens based on market demand to stabilize prices. However, this method carries high risks, as demonstrated by the collapse of TerraUSD (UST) in 2022.

Use Cases of Stablecoins: Practical Examples in the Market

Stablecoins are widely adopted due to their versatile applications.

Trading and Liquidity Management
Crypto exchanges and derivatives platforms use stablecoins as primary trading pairs. They enable movement between volatile assets like Bitcoin and Ethereum without converting to fiat. Tether (USDT) and USD Coin (USDC) are the most widely used for this purpose.

International Remittances and Payments
They facilitate fast, low-cost international transfers, especially in regions with limited banking infrastructure. Many migrant workers use stablecoins to send money home.

Integration into DeFi
Stablecoins like DAI and sUSD play vital roles in DeFi, serving as collateral for loans, components of liquidity pools, and yield farming, offering users risk mitigation options.

Access to Financial Services
For unbanked populations, stablecoins provide a gateway to digital finance. With a smartphone and internet, users can store, spend, and send funds.

Asset Hedging During Market Volatility
In times of crypto market turbulence, converting assets into stablecoins helps avoid sharp declines in value, serving as a safe haven during volatile periods.

Understanding Stablecoins by Four Main Types

Stablecoins are categorized into four types based on their stability mechanisms, each with distinct features, advantages, and risks.

Fiat-Collateralized Stablecoins

The most common type maintains a 1:1 peg with fiat currencies like USD or euro by holding equivalent reserves. Issuers fully back the stablecoins with fiat, allowing for easy exchange at any time.

Advantages include simplicity and ease of understanding. Risks involve the issuer’s ability to maintain proper reserves and transparency, leading to counterparty risk. Increased regulation could also impact operations.

Notable Projects:

• Tether (USDT): Launched in 2014, the most widely used USD-pegged stablecoin.
• USD Coin (USDC): Launched in 2018 by Circle and Coinbase, emphasizing transparency.
• TrueUSD (TUSD): Fully backed with regular third-party audits.

Commodity-Collateralized Stablecoins

Backed by physical assets like gold or oil, each token represents a specific amount of the commodity, allowing transfer of real assets digitally.

Challenges include complexity and costs associated with converting between stablecoins and physical commodities. Market fluctuations in the underlying assets can also affect stablecoin value.

Notable Projects:

• PAX Gold (PAXG): Each token equals one troy ounce of gold stored securely.
• Tether Gold (XAUT): Backed by physical gold reserves.

Crypto-Collateralized Stablecoins

Use other cryptocurrencies as collateral, often requiring over-collateralization to account for volatility. For example, issuing $100 worth of stablecoins might require locking $150 worth of crypto assets.

This approach involves higher complexity and risks, such as smart contract vulnerabilities, over-collateralization inefficiencies, and liquidation risks during sharp price drops.

Notable Projects:

• DAI: Collateralized by multiple crypto assets, pegged to USD, via MakerDAO.
• sUSD: Synthetix USD, backed by SNX tokens.

Algorithmic Stablecoins

Managed solely by algorithms and smart contracts, these stablecoins aim for stability without collateral. Supply is expanded or contracted based on demand to keep the price stable.

While innovative, they carry significant risks, as shown by the collapse of TerraUSD (UST) in 2022, which lost its peg and caused substantial losses.

Notable Projects:

• Ampleforth (AMPL): Adjusts supply daily based on price deviations.
• Frax (FRAX): Hybrid model combining partial collateral and algorithmic control.

Top 10 Stablecoin Projects by Market Share

Here are the leading stablecoin projects in the crypto market, ranked by market cap and adoption.

Tether (USDT): Market Leader

Launched in 2014 by Tether Limited, USDT is the pioneer stablecoin pegged to the USD at 1:1.
As of now, USDT’s market cap exceeds $140 billion, held across over 100 million on-chain wallets. Its widespread adoption across multiple blockchains enhances liquidity and accessibility, making it the first choice for traders seeking stability in volatile markets.

USD Coin (USDC): Trusted by Institutional Investors

Introduced in October 2018 by Circle and Coinbase under the Centre Consortium, USDC is fully backed by USD reserves.
As of December 2024, its circulating supply exceeds 42 billion tokens, with a market cap around $42 billion, ranking second. Its emphasis on regulatory compliance and transparency makes it popular among institutional and corporate users.

Ripple USD (RLUSD): Focused on International Transfers

Launched in December 2024 by Ripple, RLUSD is backed by USD deposits, government bonds, and cash equivalents, providing stability and trust.
Operating on XRP Ledger and Ethereum, it offers flexibility for financial applications. Its market cap has surpassed $53 million shortly after launch, with availability on global exchanges like Uphold, Bitso, MoonPay, and Arcax.

Ethena USDe (USDe): Yield-Generating Innovation

Launched in February 2024 by Ethena Labs, USDe functions as a synthetic yield-generating stablecoin. It combines staked ETH positions with short ETH positions on centralized exchanges to maintain peg and generate returns.
Within ten months, its market cap reached approximately $6 billion, ranking third. It also announced the launch of USDtb, a new stablecoin backed by tokenized money market funds like BlackRock and Securitize’s BUIDL, diversifying collateral.

Dai (DAI): Key Infrastructure in DeFi

Developed by MakerDAO, DAI is a decentralized, crypto-collateralized stablecoin launched on December 18, 2017.
Maintaining a 1:1 peg with USD through over-collateralization, DAI is generated by depositing Ethereum-based assets into smart contracts.
As of December 2024, its circulating supply exceeds $5.3 billion, ranking fourth. It plays a vital role in lending, borrowing, and trading within DeFi, promoting financial inclusion.

First Digital USD (FDUSD): Asia’s Stablecoin

Launched in June 2023 by First Digital Limited in Hong Kong, FDUSD maintains a 1:1 peg with USD, fully backed by cash and cash equivalents.
Reaching a market cap of $1 billion within six months and $1.3 billion by December 2024, it ranks fifth. Strategic partnerships with Binance and multi-chain integrations on Ethereum, BNB Chain, and Sui expand its reach.

PayPal USD (PYUSD): Payment Giant Entry

Introduced in August 2023 by PayPal, PYUSD is backed by USD deposits, short-term US Treasuries, and cash equivalents, issued as an ERC-20 token on Ethereum.
Despite PayPal’s large user base, adoption remains modest. As of December 2024, its market cap is about $490 million, ranking eighth. It also began operating on Solana in May 2024, with growth expected.

Usual USD (USD0): New Generation Backed by Real Assets

Launched early 2024 by Usual Protocol, USD0 is fully backed 1:1 by real-world assets, especially ultra-short-term US Treasury securities.
Operating independently from traditional banking, it offers seamless integration into DeFi. As of December 2024, its market cap exceeds $1.2 billion, with daily trading volume around $20 million, gaining user trust through transparency and diversified collateral.

Frax (FRAX): Hybrid Pioneer

Launched in December 2020 by Frax Finance, FRAX was the first stablecoin to adopt a fractional algorithmic model. It combined algorithmic mechanisms with partial collateral to maintain USD peg but shifted fully collateralized in February 2023.
With a market cap of about $645 million as of December 2023, it is integrated into various DeFi platforms for lending, borrowing, and liquidity provision.

Ondo US Dollar Yield (USDY): Yield-Generating Stablecoin

Launched in early 2024 by Ondo Finance, USDY is backed by short-term US Treasuries and demand deposit accounts, targeting outside US investors.
As of December 2024, its market cap is approximately $448 million, with a trading price around $1.07. It operates across multiple blockchains including Ethereum and Aptos, enabling diverse DeFi use cases.

Five Key Risks in Stablecoin Investment

When utilizing stablecoins, investors should be aware of certain risks:

Regulatory Uncertainty
Rapidly evolving legal environments and increased oversight by regulators pose risks. The Financial Stability Oversight Council (FSOC) has expressed concerns about potential systemic impacts, emphasizing the need for comprehensive federal regulation. New regulations could hinder operations or adoption.

Technical Vulnerabilities
Dependence on complex smart contracts and blockchain infrastructure introduces security risks. Bugs or exploits could lead to significant financial losses.

De-Pegging Risks
Insufficient reserves or market manipulation can cause stablecoins to lose their peg, leading to de-pegging. Rapid market growth and concentration risks may amplify systemic vulnerabilities.

Reserve Trustworthiness
The stability of stablecoins hinges on proper reserve management and transparency. Discovery of reserve shortfalls or mismanagement can erode investor confidence.

Market Liquidity Risks
Reduced liquidity of collateral assets may hinder exchanges between stablecoins and underlying assets, especially for commodity-backed or RWA-backed stablecoins.

Conclusion: Future Outlook for Stablecoins

Stablecoins have established themselves as a vital component of the crypto ecosystem. They bridge highly volatile digital assets and traditional finance, providing stability and convenience.

Each type offers unique benefits and challenges. Fiat-collateralized stablecoins excel in stability but face regulatory scrutiny; commodity-backed ones provide tangible backing but may encounter liquidity issues; crypto-collateralized stablecoins enable decentralization but require over-collateralization; algorithmic stablecoins are innovative but carry high risks. Understanding these differences and associated risks is crucial for effective navigation of the crypto market.

Continuously monitoring the latest developments and project trends will enable safer, more informed decisions. Referencing the list of stablecoins and aligning projects with your investment goals and risk tolerance is recommended.