Stablecoins serve as a liquidity buffer by providing a stable store of value during times of market uncertainty. When there is a risk of policy changes, investors often flock to stablecoins to avoid the volatility of other cryptocurrencies. This increased demand for stablecoins helps to maintain liquidity in the market and reduce overall volatility.

Stablecoins indeed play a crucial role in stabilizing the market during uncertain times, providing investors with a safe haven from volatility. This helps maintain liquidity and mitigate risks.