Stablecoins have grown to a $250 billion market in just five years, forming essential infrastructure for crypto adoption. However, dominant stablecoins carry hidden risks that contradict crypto’s foundational principles. Recent collapses like TerraUSD have raised questions about the stability of these digital assets. Tether’s (USDT) peg has also wavered during market stress, and USDC briefly faltered following Silicon Valley Bank’s failure.