Author: Nancy, PANews
Compared with the previous rotation of evenly affected sectors, the market atmosphere of this bull market has become increasingly deserted. On the other hand, the stablecoin track is still lively. In addition to the continued growth of the existing market size, traditional giants are taking turns to take action, new projects have repeatedly received financing, and product types are increasingly diversified... The stablecoin market is a fierce battle.
Stablecoins continue to expand, with USDT contributing more than half. New projects have grown significantly but are limited in scale.
The growth of stablecoins is often an important clue to the direction of the bull market. CoinGecko data shows that since the beginning of this year, the circulating market value of stablecoins has grown by more than 30.7% (about 39.63 billion U.S. dollars) to 170.26 billion U.S. dollars, accounting for nearly 8.2% of the total market value of the global encryption market, which is about 17.6 billion U.S. dollars away from the historical peak. Among them, the market is still dominated by stablecoins anchored to the US dollar, accounting for approximately 96.2% of the market with a market value of US$164.59 billion.
The growth of stablecoin market size mainly comes from top projects. According to PANews statistics, the market value of the Top 10 stablecoin projects has changed this year. The market value of these projects has increased by nearly 85.3% on average. Among them, BUIDL, PYUSD and USDe have achieved significant growth rates, reaching 412.2%, 267.2% and 195.6% respectively. In comparison, , the rising speed of the leading projects USDT and USDC is not outstanding, and the performance of TUSD, FRAX, USDD and DAI is lagging behind, or even falling sharply.
From the perspective of market value growth, the market value of the top ten stablecoins has increased by more than 30.42 billion US dollars, accounting for 76.7% of the overall market growth. Among them, USDT, USDe and USDC had the largest surge in market value, contributing 87.8% (USD 26.73 billion), 5.8% (USD 1.78 billion) and 3.6% (USD 1.09 billion) respectively. The remaining projects lag far behind the average, with a combined growth market capitalization of only $820 million.
And market demand has also stimulated a surge in the issuance of major stablecoins. According to PANews statistics, a total of nearly 56.95 billion of the Top 10 stablecoins were issued this year, with USDT issuing the most at 42.42 billion, followed by USDC with 11.13 billion and USDe with 2.59 billion. Judging from the growth rate of issuance volume, the average issuance rate of this project reached 40.3%. Among them, USDe’s growth rate is as high as 285.6%, and the previous high APY may be an important reason to stimulate its demand; the issuance value of TUSD is shrinking, or may be affected by factors such as Binance’s cessation of support and ownership changes.
As the market expands, the audience for stablecoins is also further opened. According to rwa.xyz data, the number of stablecoin holders has increased by approximately 29.2% since the beginning of this year and has now exceeded the 120 million mark. According to PANews statistics, the number of addresses holding the Top 10 stablecoins has increased by more than 1.55 million this year, mainly from USDT and USDC. The number of addresses for these two stablecoins has increased by 1.11 million and 414,000 respectively this year. Far ahead of its competitors, the average number of new addresses in other projects is only 3,000. Judging from the growth rate of addresses, the average growth rate of these stablecoins is 114.3%, which is mainly affected by the rapid expansion of some projects. Among them, FDUSD has the fastest growth. Of course, this has a lot to do with the "support" of Binance. The upward momentum of PYUSD, USDe and BUIDL is also stimulated by favorable incentives such as dividend mechanisms and higher yields. The growth rates are about Between 140% and 180%.
Diversified new entrants may open new space for the growth of stablecoins
“According to an analysis conducted by the Center for Economics and Business Research from April to June this year, businesses and consumers in 17 emerging markets were willing to pay an average premium of 4.7% over the standard dollar price to obtain stablecoins, and in countries such as Argentina , this figure rises to 30%. By 2027, consumers in these countries will pay a premium of $25.4 billion to obtain stablecoins," VanEck research director Matthew Sigel said in an article on X not long ago.
In fact, stablecoins, as one of the important tools for financial innovation, are gaining more recognition and participation from institutions, governments and funds, and will also provide stablecoins with a wider space for development outside the crypto market.
On the one hand, stablecoin participants are becoming increasingly diversified. Recently, many traditional institutions and governments have announced their entry into the stablecoin track. For example, Japanese Internet giants DMM Group and Progmat announced a joint study to issue stablecoins in the digital economic zone; Mercado Pago, a digital bank affiliated with Latin American e-commerce giant Mercado Libre, announced the launch of the U.S. dollar stable currency Meli Dollar in Brazil, and users can use Brazilian reals Balances can be bought and sold with no fees; asset management and banking giant State Street is exploring the creation of stablecoins to settle transfers on the blockchain; Wyoming Governor Mark Gordon also revealed that the state plans to issue a U.S. dollar stablecoin in 2025. It aims to support stablecoins through U.S. Treasury bills and repurchase agreements, and plans to launch an online trading platform in the first quarter of next year.
At the same time, some established encryption projects or institutions from the fields of DeFi, payment and VC also revealed relevant stablecoin issuance plans. For example, the recent lending protocol Liquidity announced that it will launch a new stablecoin BOLD within two months with a borrower-set borrowing interest rate, which can accept liquidity pledged ETH derivatives as collateral assets; DWF Labs announced the completion of the synthetic stablecoin design, which will Supports collateral with different interest rates such as USDt, USDc, DAI, USDe, etc.; Ripple will also launch the US dollar stable currency RLUSD in the next few weeks, which will initially only be open to institutions.
On the other hand, as U.S. dollar stablecoins dominate the market, more stablecoins supported by different legal currencies are emerging. For example, Sony's Layer 2 network Soneium will cooperate with Sony Bank to launch a Japanese yen stablecoin, Tether plans to cooperate with the UAE-based Phoenix Group PLC to develop a new stablecoin pegged to the United Arab Emirates dirham (AED), and JD.com will Hong Kong issues stablecoins linked to the Hong Kong dollar at a ratio of 1:1, and its reserves are composed of highly liquid and credible assets.
In addition, in recent months, capital has also been betting heavily on the stablecoin ecosystem, many of which have financing scales of tens of millions of US dollars, and the investment lineup is also quite eye-catching. For example, the AI agent encrypted payment network Skyfire announced the completion of an $8.5 million seed round of financing invested by USDC issuers Circle, Ripple, Gemini, and the venture capital company of the famous Silicon Valley billionaire Tim Draper; the stablecoin infrastructure company WSPN completed the completion of Foresight Ventures and Folius Ventures raised US$30 million in seed round financing; stablecoin payment platform Sling Money received US$15 million in Series A financing led by Union Square Ventures; stablecoin Level developer Peregrine Exploration completed US$3.6 million in investment led by Polychain Capital and Dragonfly Financing; Stablecoin payment network Bridge completed US$58 million in financing with participation from Sequoia and Index; Hong Kong stablecoin issuer IDA received US$6 million in seed round financing led by CMCC Global, etc.
Overall, although the current stablecoin market represented by USDT is still showing an expansion trend, the growth space is limited. As more new opponents with strong market resources and financial advantages join this stablecoin war, the situation may be Stimulate greater market vitality and endogenous power for development in this track.
(The above content is excerpted and reprinted with the authorization of our partner PANews, original text link )
Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.
"The fierce battle on the stablecoin track is in full swing: the total market value has risen to the US$170 billion mark, and many new players have entered the market with funds." This article was first published on "Blocker".
