What are stablecoins and why are they important for the cryptocurrency ecosystem?

Stablecoins are cryptocurrencies whose value is tied to stable assets, such as the US dollar or gold. Unlike volatile cryptocurrencies, they provide stability and predictability, making them convenient for everyday transactions and storing value. Stablecoins play a key role in the cryptocurrency ecosystem by reducing risks for users and investors. They facilitate easy transfers of funds without price fluctuations, contributing to greater adoption of cryptocurrencies in the real world.