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There are some cases where volatility is a huge problem and so a stablecoin is a better choice than a cryptocurrency. Similarly there are some cases where a regulated asset with a trusted counterparty is a benefit. But cryptocurrencies have three big advantages over stablecoins. 1) A stablecoin can only be stable with respect to one currency and a stablecoin denominated in the fiat you need it to be stable relative to may not exist with the qualities you want. Applications that involve multiple jurisdictions with different native fiats don't benefit as much from the stability. 2) A stablecoin can be frozen or clawed back by its issuer. Ripple, for example, can't refuse a US court order. And the US courts may decide that other things matter more than you do even if you've done nothing wrong. For example, if some country asserts that you've supported terrorism and claims secret evidence, is a US court going to protect you even if you claim that your only support for terrorism was in the form of speech criticizing that government's human rights record? Do we expect AI agents to defend themselves in courts? Do you want to have to? 3) For most cryptocurrencies most of the time, the upside is worth more than the downside. So if you don't need stability, you might prefer a cryptocurrency over a stablecoin for many applications. If I had to lock up some money in an escrow for a year, I might well prefer XRP or BTC to USD because I know USD isn't going up.