News 
March 21, 2025 
3 min. 
Recently, Changpeng “CZ” Zhao, founder of Binance, highlighted a significant shift in the cryptocurrency market, noting that there are currently more stablecoin launches than altcoin launches. Stablecoins are cryptocurrencies pegged to traditional currencies, such as the US dollar, offering financial stability. Altcoins, on the other hand, are alternative cryptocurrencies to Bitcoin and Ethereum, often characterized by higher price volatility, meaning they experience rapid and unpredictable price movements.
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This trend marks a considerable transformation in the crypto space, where over $230 billion in stablecoins is currently in circulation worldwide. Major stablecoins like Tether (USDT) and Circle’s USDC represent most of this value, although an increasing number of smaller projects are emerging rapidly.
Reasons Behind the Growth of Stablecoins
One primary reason behind the increasing launch of stablecoins is the quest for security and lower volatility. Unlike altcoins, which can quickly lose up to 90% of their value, stablecoins offer greater security to investors by maintaining stable values. According to data from the Artemis platform, there are already over 42 smaller stablecoin projects, collectively valued at about $6.4 billion.
Another contributing factor is the interest of new crypto projects in creating their own liquidity. Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. With their own stablecoins, platforms aim to offer users decentralized financial operations (DeFi), meaning transactions conducted directly between users without banks or intermediaries.
However, experts warn about risks associated with the rapid expansion of stablecoins. Some stablecoins use complex algorithms or are excessively collateralized (supercollateralized) by other digital assets, which can pose significant issues during market downturns. A notable example was the Terra (LUNA) stablecoin, which quickly lost value, causing significant losses.
Analysts also point out fragmented liquidity as another challenge, meaning each stablecoin might operate within its own closed ecosystem, making exchanges with other currencies difficult and limiting practical use.
In this context, despite their apparent advantages, experts recommend caution in adopting stablecoins. It is essential for investors to seek clear information about projects and thoroughly understand stablecoin mechanisms before investing.
