Quick look at the top six right now
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As of July 11, 2025, the largest stablecoins by market value are Tether (USDT) at $159.1B, USDCat $63.13B, Dai (DAI) at $5.37B, Ethena USDe (USDe) at $5.33B, World Liberty Financial USD(USD1) at $2.2B, and First Digital USD (FDUSD) at $1.45B. These six show the range ofconcepts, from wholly reserved fiat models to on-chain collateral and synthetic/derivative-backed alternatives. (Bankrate)


1. USDT (Tether)
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It is the first stablecoin to gain significant traction and serves as the market's liquidity anchor.
How it keeps the peg: The issuer mostly holds cash and short-term U.S. Treasury securities,with minor amounts going to other assets. Creation and redemption with institutionalcounterparties keeps the price close to $1.
Why people like it: Most liquidity and support for the most exchanges.
It is important to keep in mind that you depend on the quality of the issuer's reserves, theirdisclosures, and the reliability of counterparties. There have been brief de-pegs during times ofmarket stress.


2. USDC, or USD Coin

What it is: Circle runs a dollar-pegged coin that was made for regulated, mainstream use.
How it keeps the peg: 1:1 dollar reserves (cash and T-bills) that are reported on a regular basisand issued and redeemed on several blockchains (like Ethereum).
People appreciate it for its strong transparency, availability of fiat on/off-ramps, and alignmentwith businesses.
Important things to keep in mind: There is a risk of banking/custody concentration, just like withany centralized fiat-backed coin.


3. Dai (DAI)

MakerDAO operates a decentralized, on-chain stablecoin.
How it keeps the peg: Over-collateralized vaults (with crypto and real-world assets throughprotocols) that automatically liquidate if the collateral drops.
Why people like it: Programmability and openness on the blockchain.
Be cautious of collateral volatility, oracle risk, and the protocol's evolving collateral mix, whichnow includes RWA and fiat-linked assets; these aspects are subjects of debate among someindividuals.


4. Ethena USDe (USDe)

What it is: A synthetic dollar stablecoin that aims for $1 without having cash-like reserves.
How it keeps the peg: A "cash-and-carry" hedge is going long on spot ETH and short on ETHfutures. This cancels price changes and makes money to help keep things stable.
Why it's important:The business is rapidly expanding, boasting a unique and innovative market-neutral design.
Important things to keep in mind: derivative venue risk, liquidity stress, and regulatory attention,such as an incident in 2025 with Germany's BaFin that involved a redemption plan and actionsthat followed. Before using this service, always verify the most recent status.


5. World Liberty Financial USD (USD1)

It is a coin pegged to the dollar and associated with World Liberty Financial (WLFI), which is awell-known and politically connected crypto business.
It maintains its peg by claiming to be backed 1:1 by cash, T-bills, and cash equivalents. Coveragehas also mentioned that it supports many chains, including Ethereum, BNB, and TRON.
What makes it intriguing: In 2025, there was a lot of attention and controversy because ofpolitical linkages and big shifts in the treasury and board.
Important issues to monitor include concerns about conflicts of interest and changes ingovernance; further research on reserves, licenses, and counterparties is recommended.


6. First Digital USD (FDUSD)

What it is: First Digital issues a fiat-backed stablecoin that is widely utilized in Asia and isbecoming more popular around the world.
It maintains the peg by utilizing a trust structure that stores cash and easily convertible assets.The issuer has said that the reserves are problematic and has changed the issuing entity'sjurisdiction.
Why it's important: The issuer focuses on programmable features for escrow and settlement, aswell as more exchange integrations.
Important things to keep in mind: Like with any centralized coin, there is the possibility of a coincustodian, legal body, or jurisdiction. Therefore, it is crucial to monitor official reserveattestations and corporate updates.