Algorithmic stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. Unlike traditional stablecoins, which are backed by reserves of assets, algorithmic stablecoins use algorithms and smart contracts to control supply and demand. This helps to stabilize their price through mechanisms that automatically adjust the coin's supply based on market conditions. These stablecoins aim to provide the benefits of digital currencies, such as fast transactions and low fees, while minimizing volatility. Popular examples include Ampleforth and Terra, which utilize different strategies to achieve price stability without relying on collateral.