Chainfeeds Introduction:
Even though the growth of stablecoins this year is obvious to all, the market is still criticized for lack of liquidity and no new funds in this cycle. Has the above theory been proven false? What is the actual correlation with the coin price and the TVL of the overall crypto market? What are the recent strategic moves of the above-mentioned major stablecoin issuers?
Source:
https://www.theblockbeats.info/news/55204
Article author:
WOO X Research
Viewpoint:
WOO X Research: On September 23, USDC Treasury minted another 50 million USDC on Ethereum. This is the second time that Circle has issued such a large amount of additional tokens since September. At the same time, Tether also minted 1 billion USDT on Ethereum on September 16. This series of additional issuances indicates that the market demand for stablecoins is increasing. The issuance of stablecoins is usually seen as a signal of hot money inflows in the market, which means that investors are optimistic about the future of the crypto market. DeFiLlama data shows that the overall market value of stablecoins will increase from US$130 billion to US$172 billion in 2024, an increase of 32% this year. This growth not only shows the market's recovery potential, but also reflects the increasing attention of investors to crypto assets. Despite this, the market still has problems such as insufficient liquidity and lack of new funds. This has raised questions about whether the current issuance of stablecoins can effectively drive a market rebound. USDT dominates the stablecoin market, with a market share of up to 70%, and the main circulation is concentrated on TRON. Tether's parent company's financial report for the second quarter of 2024 showed that net operating profit reached $1.3 billion, and total revenue for half a year was as high as $5.2 billion, setting a record high. Tether's income mainly comes from a 0.1% handling fee charged on deposits and redemptions, as well as fees for other related services. Unlike Circle's expansion strategy, Tether has chosen a diversified strategy, recently acquiring a 9.8% stake in Latin American agricultural giant Adecoagro and announcing the development of a decentralized AI model. At the same time, Tether has also established several new business units, including technology, finance, energy and education, to explore market opportunities beyond stablecoins. These strategic initiatives not only enhance Tether's competitiveness in the stablecoin field, but also enable it to maintain profitability in a volatile market environment. PYUSD is a stablecoin launched by PayPal in 2023. Despite its short history, it has quickly gained market recognition on Solana and Ethereum. Currently, PYUSD has a market value of $722 million, and has grown significantly since its listing, benefiting from the rapid development of the Solana ecosystem. The circulation of PYUSD is closely related to the rewards of the DeFi protocol, and the recent decline in returns has led to a decrease in the circulation of PYUSD. PayPal chose Solana as the base chain for PYUSD, mainly because of its excellent settlement speed and low transaction fees. In the DeFi ecosystem, the circulation of PYUSD once accounted for 78% of Solana's total circulation. However, as the returns of the lending protocol Kamino declined, the circulation of PYUSD was also affected. PayPal has a clear direction in the development of stablecoins and payment businesses, and its recent investment activities also show its continued attention to the crypto field.
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