Stablecoin

A cryptocurrency pegged to a stable asset like the U.S. dollar.

A stablecoin aims to hold a steady value by pegging to a reserve asset, usually a fiat currency. Backed types hold cash or bonds; algorithmic ones use code to maintain the peg. They provide a stable medium for trading and DeFi, but some have collapsed dramatically.

Traders parked profits in a dollar-pegged stablecoin to sit out the volatility without cashing out.