Recently, discussions around stablecoins in the crypto market have become increasingly heated. A new decentralized stablecoin solution is emerging, claiming breakthroughs in stability, transaction speed, transparency, and degree of decentralization. This has led many to ponder: will the status of traditional stablecoins truly be shaken?

From a technical dimension, this type of new stablecoin adopts an algorithmic mechanism and smart contracts for automatic adjustment, theoretically able to maintain value anchoring during severe market fluctuations. However, the key question is whether this mechanism can truly withstand the test under extreme market conditions? Historically, many algorithmic stablecoin projects have ultimately failed, with risk factors often hidden in the details—insufficient liquidity, governance risks, or design flaws in the model itself.

From the perspective of the market landscape, the reason traditional stablecoins hold the top position is not only because of their first-mover advantage but also due to the accumulation of sufficient trust and ecological support. New entrants need more than just technological innovation to truly shake this status; they also require time for validation and widespread practical application. The ideals of Decentralization are appealing, but what investors ultimately look at is the actual performance.

For individuals, choosing a stablecoin is simply a trade-off between innovative potential and certainty. It’s either betting on the future space of new technology or opting for proven safety—there is no absolute right or wrong; the key is to be clear about how much risk one can bear.