Which stablecoins to choose in 2024-2025: an up-to-date guide to 7 leading projects

A stablecoin is a digital asset whose value is pegged to a stable asset, usually a fiat currency (dollar, euro), or precious metal. Unlike volatile cryptocurrencies, such coins are designed to maintain approximately the same price. However, history has shown that even stablecoins can lose their peg, so choosing a reputable project is crucial.

Today, stablecoins serve as a bridge between traditional finance and the crypto world. They are used for trading, lending in DeFi, international transfers, and savings. Understanding how different stablecoins work will help you make an informed decision when selecting an asset for your needs.

Market Leaders: USDT and USDC

USDT (Tether) — the oldest stablecoin, launched in 2014. Its peg to the dollar is 1:1, and its reserve volume exceeds $83 billion. USDT enables fast cross-border transfers and low fees, making it a standard in the crypto industry.

USDC (USD Coin) — the second-largest stablecoin with a current market capitalization of $75.54B (as of January 2026). Created by Circle in 2018 and managed by the decentralized consortium Centre. USDC is available on most centralized and decentralized exchanges, supporting the ERC-20 standard. The price is fixed at $1.00.

Specialized Stablecoins

TUSD (True USD) — a stablecoin focused on transparency and security. Its current market capitalization is $494.37M. All user funds are held in independent escrow accounts inaccessible to the issuer. This prevents misuse of assets. TUSD undergoes regular audits by independent organizations.

BUSD — a stablecoin created jointly by a major platform and Paxos Trust. Built on Ethereum networks and supporting various compatibility standards. When demand decreases, the platform reduces supply through token burning.

Decentralized Alternatives

DAI — a unique decentralized stablecoin issued via Maker Protocol on Ethereum. Unlike centralized counterparts, DAI is not controlled by a single company. Its current capitalization is $4.44B. Tokens are created through collateralized crypto assets (Bitcoin, Ethereum) in Maker Vault smart contracts. DAI has a soft peg to the dollar 1:1 and is the first successful fully decentralized stablecoin project.

eUSD and peUSD (Lybra Finance) — innovative stablecoins that generate interest income for their holders. These tokens are backed by liquidity staking tokens (LST). While regular stablecoins simply preserve value, eUSD and peUSD allow earning passive income while remaining pegged to the dollar.

Synthetic Dollars and New Approaches

Synthetic USD is an innovative solution for users needing dollar stability without interacting with banks. The approach is based on hedging two correlated assets. For example, if you open a position of 100 USD in Bitcoin, then as Bitcoin’s price rises, your hedging contract decreases by a similar amount, keeping the overall position stable. Companies working in Bitcoin infrastructure offer functions of stable USD pricing via native Bitcoin.

Why Stablecoins Are Needed: Main Applications

DeFi and Lending

Stablecoins are the backbone of decentralized finance. On lending platforms, they are used as collateral due to low volatility. Unlike Bitcoin or Ethereum, the value of stablecoins should remain roughly the same, reducing risk for lenders. This has made stablecoins indispensable in the DeFi ecosystem.

Portfolio Dollarization

For residents of countries with unstable currencies, stablecoins are a way to protect savings. Holding USDT or USDC is practically equivalent to holding US dollars, but with blockchain advantages: 24/7 access, fast transfers, and no need for a bank account.

International Transfers

Traditional banks charge high fees for international transfers. Stablecoins allow sending money abroad within minutes with minimal fees, which is especially important for people in developing countries.

Risks to Consider

Despite their advantages, stablecoins carry risks:

• Loss of peg: if the value of the backing asset drops or the issuer faces financial problems, the stablecoin may lose its peg
• Regulatory uncertainty: cryptocurrency legislation is still evolving, and new rules could unpredictably impact stablecoins
• Network congestion: during peak activity, delays may hinder timely access to funds

Before investing, it is recommended to check the security ratings of issuers and the composition of their reserves.

How to Start Using Stablecoins

The easiest way is to buy stablecoins on a centralized exchange with fiat currency. Alternatively, you can exchange other cryptocurrencies (Bitcoin, Ethereum) for stablecoins. Advanced users often prefer decentralized exchanges and P2P marketplaces, as they allow maintaining control over private keys during transactions.

Conclusions

Stablecoins are a vital component of the modern crypto ecosystem, providing a link between fiat and digital assets. The choice between centralized options (USDT, USDC) and decentralized solutions (DAI) depends on your priorities: reliability, transparency, or full autonomy. As the crypto industry develops, demand for quality stablecoins will only grow, opening new opportunities for users worldwide.