Stablecoins are now one of the most important pillars of the crypto ecosystem. Designed to maintain parity with fiat currencies, they bring stability to a market defined by volatility.
In 2025, the ranking by market cap highlights five projects that not only dominate in volume but also stand out for their unique stories and proposals. Below, you’ll discover the top 5 stablecoins in detail: how they were created, their mission and values, and the advantages and risks they present.
What Are Stablecoins?
Stablecoins are cryptocurrencies designed to keep their value stable in relation to a reference asset, usually the U.S. dollar (USD).
Unlike coins such as Bitcoin or Ethereum, which experience daily price fluctuations, stablecoins were created to reduce volatility and serve as a reliable medium of exchange in the crypto ecosystem.
How Do They Work?
- Fiat-backed: Each token is backed by dollar deposits or equivalent assets held in reserves (e.g., USDT, USDC).
- Crypto-collateralized: Backed by crypto assets, requiring over-collateralization to maintain stability (e.g., DAI).
- Algorithmic or synthetic: Use market mechanisms and derivatives to maintain the peg without directly relying on traditional reserves (e.g., USDe).
Why Are They Important?
- Trading: Act as stable currency pairs on exchanges, allowing quick crypto purchases and sales without needing banks.
- Global payments: Enable fast, low-cost international transfers.
- DeFi: Serve as the foundation for lending, liquidity pools, and yield generation in decentralized protocols.
- Protection: Help investors safeguard against the typical volatility of the crypto market.
Top 5 Stablecoins by Market Cap in 2025
Source: Coinmarketcap
1. Tether (USDT)
Founded in 2014, USDT was a pioneer in the stablecoin sector. Originally called Realcoin, it was later rebranded as Tether Limited and launched on the Bitcoin blockchain (via Omni Layer). Over time, it expanded to multiple networks, including Ethereum, Tron, and Solana.
Mission and Values:
Tether’s mission has always been to provide a stable and global digital asset, ensuring liquidity for the crypto market. Its values focus on efficiency, accessibility, and the mass adoption of stablecoins.
Pros:
- Absolute leader in liquidity and trading volume.
- Supported across multiple blockchains.
- Widely accepted on exchanges and DEXs.
Cons:
- Past controversies over reserves.
- Criticism for including assets like gold and Bitcoin in its backing.
- Centralized governance.
2. USD Coin (USDC)
Launched in 2018 by Circle, in partnership with Coinbase, USDC was created to be the most regulated and transparent alternative in the market. Today, it has the backing of major financial institutions and is issued under strict compliance standards.
Mission and Values:
Its mission is to be the trusted stablecoin for institutional and corporate use, with values rooted in transparency, regulation, and global compliance.
Pros:
- Fully audited reserves with regular reports.
- Strong regulatory alignment.
- Backed by giants such as BlackRock.
Cons:
- Centralized control, with the ability to freeze wallets.
- Less popular among users who prioritize decentralization.
- Lower liquidity compared to USDT in some markets.
3. Ethena USDe (USDe)
USDe was created in 2024 by Ethena Labs as a “synthetic” stablecoin. Unlike traditional stablecoins that hold dollars in banks to secure their value, USDe uses a strategy within the crypto market itself.
It buys digital assets while simultaneously taking the opposite position in perpetual futures contracts. This creates balance: if crypto prices rise, losses on futures offset the gains; if prices fall, the profits on futures cover the losses. This mechanism keeps USDe’s value stable around 1 USD.
Mission and Values:
USDe’s mission is to build a native stablecoin for the crypto economy, free from reliance on traditional banks. Its values are innovation, financial autonomy, and full integration with DeFi.
Pros:
- Innovative design with no direct reliance on fiat reserves.
- Rapid adoption within the DeFi ecosystem.
- Potential to generate extra yield through staking (sUSDe).
Cons:
- Exposure to derivative and funding rate risks.
- Still a new model, lacking a long-term stress history.
- Technical complexity makes it harder for beginners to understand.
4. DAI (DAI)
DAI was created in 2017 by MakerDAO and became known as the first truly decentralized stablecoin. This means it doesn’t rely on a company or bank to exist. Instead, each DAI is backed by cryptocurrencies locked as collateral within smart contracts.
To maintain stability, the system always requires more collateral than the issued value — for example, someone must deposit $150 in crypto to mint $100 in DAI. Over time, MakerDAO also began including real-world assets, such as U.S. Treasury bonds, in its collateral pool, making the project more stable and diversified.
Mission and Values:
Its mission is to provide a stablecoin independent of centralized issuers, secured by smart contracts and governed by the community. DAI’s core values are decentralization, on-chain transparency, and resilience.
Pros:
- Fully on-chain and transparent.
- Strong community-driven governance.
- Long operational history without losing its peg for extended periods.
Cons:
- Increasing reliance on centralized assets (like USDC) in its backing.
- Exposure to the volatility of crypto-collateralized assets.
- Variable stability fees can affect users.
5. World Liberty USD (USD1)
World Liberty Financial launched USD1 in 2025, and it grew rapidly, reaching major exchanges within the first few months. This quick rise caught the market’s attention, but concerns remain since the project has not released detailed audit reports on its reserves.
In other words, despite its fast growth, the lack of transparency prevents investors from fully trusting the coin.
Mission and Values:
Its stated mission is to create a global and accessible stablecoin, with values focused on rapid expansion, financial inclusion, and innovation.
Pros:
- Fast growth and entry into the global top 5.
- Strong early presence on trading platforms.
- Potential to attract new investors and users.
Cons:
- Lack of detailed reserve reports.
- Limited transparency.
- Very recent history with no proven resilience.
*Today, USD1 holds relevance in market capitalization but is still regarded as a “wait-and-see” stablecoin. Its growth shows potential, yet due to ongoing controversies around transparency and reserves, the predominant recommendation from analysts is caution. For investors and users, monitoring its evolution is important — but diversification and reliance on more established stablecoins remain essential.
Manage Your Stablecoins with Klever Wallet
The Top 5 stablecoins of 2025 make it clear that there’s no single perfect choice.
Each one has its own story, mission, and values — helping you decide not only where to invest, but also which stablecoin best fits your goals, whether for trading, payments, institutional treasury, or DeFi use.
In the end, it all depends on what you’re looking for: liquidity for trading, security for payments, yield in DeFi, or full autonomy over your assets.
That’s where Klever Wallet becomes the ideal partner. With support for all these stablecoins, multichain integration, and a focus on self-custody, it ensures you have complete control of your money without giving up convenience.
On top of that, it allows you to swap between stablecoins in just a few clicks, making everyday life easier for anyone who approaches the crypto market strategically.
Download Klever Wallet now and explore the best of each stablecoin with security and simplicity.
