USDC (USD Coin) is a stablecoin that is pegged to the US dollar at a 1:1 ratio, which means that for every USDC token issued, there is a corresponding US dollar held in reserve. This pegging mechanism helps to reduce volatility because the value of USDC remains relatively stable compared to other cryptocurrencies that are subject to market fluctuations. Additionally, the transparency and regulatory compliance of USDC issuers help to build trust in the stablecoin, further reducing volatility.
