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Stablecoin
Crypto designed to track a fiat currency (usually USD) at 1:1 — used as cash equivalent on exchanges.
What it is
Stablecoins are pegged to fiat (USD typically) and used as crypto's working capital. Major types: (1) FIAT-BACKED (USDT, USDC) — issuer holds USD reserves, users trust the audit; (2) CRYPTO-BACKED (DAI) — overcollateralized by ETH and other tokens; (3) ALGORITHMIC (most have failed: TerraUSD collapsed in 2022). Stablecoins are the trading pair of choice — most crypto trades happen as BTC/USDT, ETH/USDT, not BTC/USD. When you 'exit to cash' on an exchange without withdrawing, you're holding stablecoins. The stablecoin supply trend is also a macro signal: rising USDT/USDC supply = capital flowing INTO crypto.
Example
Total USDT + USDC supply rises from $130B to $165B over 8 weeks. Historically this leads price by 2-4 weeks — stablecoin inflows precede major rallies.
How Indikora uses Stablecoin
Indikora's Macro panel tracks total stablecoin supply as a leading indicator of crypto liquidity. Stablecoin filters also exclude USDT/USDC from trading universe (no point trading dollar against dollar).