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Digital Asset Stability

Definition

Digital asset stability refers to a cryptocurrency or token’s capacity to maintain a consistent value over time, minimizing price fluctuations. This characteristic is vital for assets intended for payments, lending, or as a reliable store of value. Stablecoins are a primary illustration, designed to link their value to fiat currencies or other steady assets. Achieving this requires various mechanisms, including collateralization, algorithmic adjustments, or fiat reserves.