Stablecoins in high-volatility markets serve as a hedge and liquidity tool. Investment strategies include: 1) Parking funds in stablecoins (e.g., USDT, USDC) during downturns to preserve capital; 2) Using them for quick re-entry into volatile assets like BTC or ETH when opportunities arise; 3) Allocating 20-40% of a portfolio to stablecoins for stability, balancing riskier assets. Their role in asset allocation is to reduce portfolio volatility, ensure liquidity, and provide a safe haven, enabling investors to navigate unpredictable market swings effectively.