What Is the “Gresham’s Law” Analogy in Crypto?

Gresham's Law states that "bad money drives out good money." In cryptocurrency, this is often applied to stablecoins or token ecosystems where a less reliable or less collateralized token (the "bad money") might be used more frequently in transactions, while the more reliable or better-collateralized token (the "good money") is hoarded or staked, reducing its velocity.