Recent legislative changes in the U.S. have resulted in a significant increase in stablecoin volumes, such as USDe and USDS, following the enactment of the GENIUS Act.
Surge in Stablecoin Supplies
Following the passage of the GENIUS Act, data from platforms like DefiLlama and CoinGecko reveals a dramatic increase in the circulating supply of specific stablecoins. Notably, the supply of Ethena USDe surged by 70%, reaching approximately 9.49 billion, while Sky’s USDS saw a 23% increase, pushing its supply to nearly 4.81 billion.
Impact of the GENIUS Act
The GENIUS Act serves as a crucial piece of legislation for the stablecoin sector. Julio Moreno, Head of Research at CryptoQuant, highlights that the Act prohibits stablecoin issuers from directly providing yields to holders. This creates a new dynamic for investors who are now looking for alternative revenue streams.
Benefits of Stablecoin Staking
Staking has emerged as a significant driver of growth for USDe and USDS. These stablecoins offer the opportunity to earn returns by participating in various decentralized finance (DeFi) activities. As traditional methods for income generation become restricted, alternative methods like staking are gaining popularity.
The passage of the GENIUS Act has indeed spurred significant growth in the supplies of stablecoins like USDe and USDS. This highlights market dynamics and the persistent demand for staking opportunities, even under new regulatory frameworks.
