In high-volatility markets, stablecoins like USDT or USDC serve as safe-haven assets, preserving capital amid crypto price swings. Investment strategies include parking funds in stablecoins during downturns to avoid losses, then reallocating to undervalued altcoins or Bitcoin at market bottoms. They act as a liquidity buffer in asset allocation, typically 20-40% of a portfolio, balancing riskier holdings. Yield farming or staking stablecoins on DeFi platforms (e.g., Aave, Curve) offers modest returns (5-10% APY) with low volatility exposure. As of March 07, 2025, their role remains pivotal for hedging and tactical re-entry.