USDT, USDC, and euro tokens: how stable cryptocurrencies work

The price of Bitcoin and altcoins changes daily. For storage or transfers, such assets are inconvenient: the price can drop by 20% in just one day. Users need an instrument that combines the stability of fiat with the speed of blockchain.

This is exactly what stablecoins solve. With them, you can store money in dollars or euros and quickly transfer it via blockchain. Today, such tokens have become a universal tool: from P2P payments to business and DeFi.

In this article, you’ll learn:

• How stablecoins work and why they’ve become the foundation of today’s crypto economy.
• The difference between dollar- and euro-pegged tokens — and which one to choose for storage or transfers.
• How to use stablecoins to protect your assets from volatility and reduce fees.

Stablecoins are essentially digital dollars and euros. Their role in 2025 is hard to overestimate: without them, the market would look far less stable.

A stablecoin is a cryptocurrency whose value is strictly pegged to fiat money or another asset. The simplest formula: 1 token = 1 dollar (or euro).

There are several types of collateral:

• Fiat-backed: e.g., USDT, USDC. They are backed by real money in bank accounts, bonds, commercial papers, loans, etc.
• Crypto-backed: e.g., DAI. Such stablecoins are backed by ETH or other assets via smart contracts.
• Algorithmic: these stablecoins maintain the peg not through reserves but via token minting/burning and economic incentives. The most famous example is UST, which collapsed in 2022.

The key difference is who ensures price stability: a company, a smart contract, or an algorithm. Reliability depends on this.

Stablecoins have several key use cases:

• Storing funds without bank accounts. A wallet with a private key is enough.
• P2P transfers and international settlements without intermediaries and SWIFT.
• Use in DeFi: lending, staking, farming.
• Fixing profits after trading without exiting into fiat.

In all cases, users get the same advantage — exchange rate stability while retaining the flexibility of cryptocurrencies.

Although most of the stablecoin market is pegged to the dollar, there are tokens pegged to the euro. They occupy a smaller share but are in demand in Europe and among companies that work specifically with this currency.

Key examples:

• EURT (Euro Tether stablecoin) — the European version of USDT, issued by the same issuer.
• EUROC (Euro Coin) — the USDC counterpart from Circle, with the same transparency principles.
• Stasis Euro (EURS) — one of the first euro stablecoins, backed by real reserves in EU banks.

The use of euro stablecoins is still limited. Most international settlements are dollar-oriented, and euro token liquidity is much lower. But for EU companies and users who prefer storing assets in euros, these options are becoming relevant.

USDT TRC-20 leads in adoption and convenience, USDC maintains its position due to transparency, while DAI attracts with decentralization. Euro stablecoins still occupy a niche share but are useful for those working specifically with European currency.

See the detailed comparison of the two most popular stablecoins in the article “USDT vs USDC: what’s the difference and which token is better for transfers?”

The main reason for stablecoins’ popularity is their combination of the convenience of cryptocurrencies with the predictability of traditional money. They have become the standard for transfers and settlements in the ecosystem. But alongside advantages, there are also weaknesses.

Pros:

• Price stability. A token is always equal to a dollar or euro, eliminating sharp price fluctuations. This makes stablecoins a convenient tool for storing funds and making payments.
• Convenience for transfers. Sending USDT or USDC takes just a couple of clicks, without banks or intermediaries. This format is ideal for P2P settlements and international transfers.
• Versatility. Stablecoins work not only for daily transfers but also in DeFi protocols: lending, staking, farming. In essence, they have become the digital cash of the crypto market.

Cons:

• Centralization and blacklisting. For example, USDC is managed by Circle and can blacklist addresses at regulators’ request. This reduces user freedom.
• Dependence on the issuer. In the case of USDT, trust in Tether remains crucial due to past concerns about reserve transparency.
• Unstable models. Algorithmic stablecoins like UST showed that when the mechanism fails, the peg can collapse completely.

Thus, stablecoins are convenient and useful, but they should not be considered an absolutely safe instrument. Their reliability depends on the specific model: centralized ones are better suited for mass settlements, while decentralized ones are preferable for those who value independence.

USDT TRC-20 accounts for more than 70% of all stablecoin transfers in 2025. The reasons for its popularity:

• minimal fees in the past (in 2017 a transfer cost less than $1);
• instant transactions and high throughput of Tron;
• support on all exchanges and wallets.

Today, fees have risen: a transfer without Tron Energy costs $4.54. But adoption and user habits have made USDT TRC-20 the digital dollar for everyday payments.

In the Tron network, fees are based on two resources: Bandwidth and Energy. If there is no Energy, part of the cost is deducted in TRX.

Examples of USDT transfer fees in 2025:

• transfer to a wallet with tokens: 6.77 TRX, at $0.34 ≈ $2.3;
• transfer to a new address: 13.37 TRX ≈ $4.54.

Solution — renting Tron Energy. The rental service connects Tron network resources directly to a blockchain address and allows you to:

• reduce fees by up to 65%;
• send USDT without TRX with Unlimited connection;
• make transfers convenient even for beginners and businesses.

Thus, Tron Pool Energy makes USDT TRC-20 stablecoin cheap for transfers again.

Stablecoins have become the foundation of the crypto economy. They allow you to store, transfer, and use money without banks and with a fixed exchange rate.

Among all options, USDT TRC-20 remains the most practical for everyday transfers. And Energy rental makes fees predictable and minimal.

In 2025, stablecoins are no longer just digital dollars but a full-fledged bridge between the world of cryptocurrencies and traditional finance.