sincerem
VIP Contributor
Stable coins act as their name implies, they aren't volatile coins, they're simply stable, doesn't move up or slow down even when other coins are jumping high, or drifting down.
WHAT MAKES THEIR PRICE TO DROP DOWN A LITTLE BIT EVEN WHEN THEY ARE STABLE IN NATURE?
I know some users who are new into crypto ecosystem will always wonder why the prices of stable coins drop down a little bit when their prices are meant to remain static as their name implies, being stable.
Remember, this stable coins are representing country's fiat currencies in the digital coin market. With that, they are subjected to rise and fall as the country's Fiat currency they're representing drop down in price. That's why you see coins like USDT, USDC, BUSD showing their prices like this sometimes '$0.9999. They are representing USD in the digital coin market, so when the price of USD (United states dollar) drop's down, they follow too.
WHAT MAKES THEIR PRICE TO DROP DOWN A LITTLE BIT EVEN WHEN THEY ARE STABLE IN NATURE?
I know some users who are new into crypto ecosystem will always wonder why the prices of stable coins drop down a little bit when their prices are meant to remain static as their name implies, being stable.
Remember, this stable coins are representing country's fiat currencies in the digital coin market. With that, they are subjected to rise and fall as the country's Fiat currency they're representing drop down in price. That's why you see coins like USDT, USDC, BUSD showing their prices like this sometimes '$0.9999. They are representing USD in the digital coin market, so when the price of USD (United states dollar) drop's down, they follow too.
