Stablecoins are less volatile than other cryptocurrencies (like Bitcoin) and due to crypto assets’ inherent instability, stablecoins are growing in popularity with both crypto and traditional markets. Stablecoins are a type of crypto asset, but one that offers a way to bridge the gap between fiat currencies like the U.S. dollar and cryptocurrencies. Because they are price-stable digital assets that behave like fiat but maintain the mobility and utility of cryptocurrency, stablecoins are a novel solution to crypto volatility: price stability is built directly into the assets themselves. There are four primary stablecoin types, identifiable by their underlying collateral structure: fiat-backed, crypto-backed, commodity-backed, and algorithmic stablecoins. What Are Stablecoins and How Do They Work? | Gemini