The post Why 370 Tokens Now Exist appeared on BitcoinEthereumNews.com.

Stablecoins are a linchpin for the crypto markets. Since the beginning of the July 2017 bull run, Tether’s USDT, the largest and longest-running stablecoin, which had a market cap of $108 million, has seen its market capitalization grow an astounding 170,600% to $184 billion. Some of this stablecoin demand came from crypto exchanges needing a stable asset to trade without formal bank access to the US dollar. Clamor from people living in places that don’t have access to the greenback was another.  Different Categories of Stablecoins. Source: CoinGecko Now, with clear guidance available for stablecoins via the US CLARITY Act, a rush to enter this business is underway. This is made clear by the sheer number of stablecoins available today.  Sponsored Sponsored Data aggregator CoinGecko lists a brain-bending 370 stablecoins. That seems excessive. Why so many stablecoins? And how does this dynamic impact the broader crypto market? Stable But Not Equal The vast majority of stablecoins exist to peg to the US dollar and provide access to American dollars. But what many likely do not know is that many of these stable tokens are constructed quite differently from one another.  “There are different types of stablecoins, largely categorized by the collateral backing them,” Ryne Saxe, CEO of Eco, which provides stablecoin infrastructure, told BeInCrypto. “Those backed by real-world assets, like fiat currency or treasuries, those backed by cryptoassets, and other so-called ‘algorithmic’ stablecoins that have no collateral backing.”  The major types of stablecoins – fiat-backed are by far the most popular: Source: Shamlatech Examples of real-world asset-backed stablecoins are Tether and USDC, which are backed by US Treasuries and fiat, or government-issued cash.  Cryptoasset stablecoins include Sky, formerly known as MakerDAO, which has a grab-bag of blockchain-based assets as its backing.  The algorithmic types include Ethena’s USDe, which uses what’s…

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Filed under: News - @ November 27, 2025 12:22 am