Stablecoins Are On Solid Ground After Terra Collapse

Data: Messari; Note: Top five stablecoins as of April 1, 2022; Map: Simran Parwani/Axios

Stablecoins are designed to be, you know, stable. However, an algorithmically supported version of Terra turned out to be quite unstable, and it shook the crypto market as a whole.

Why it matters: The emerging asset class is increasingly being used as a stepping stone to crypto. Therefore, central banks and governments around the world are expressing concern that stablecoins, which can be vulnerable to runs, come with financial risks.

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