Stablecoins, such as USDT and others, are gaining more recognition in financial markets, attracting the attention of both businesses and users.
The Rise of Stablecoins in the Global Market
With a combined market cap of $250 billion, stablecoins are still in the early stages of growth. Their appeal lies in a business model that benefits issuers through interest on fiat reserves without passing those yields to users.
Institutional Interest in Stablecoins
Stablecoins are attracting interest from banks and major retailers due to low risk and high margins. Lee noted that 80% of stablecoin volume now takes place outside the U.S., with Asia leading the charge. In some countries, USDT trades at a premium and is even used in property deals.
The Potential of Ethereum and Competing Blockchains
As stablecoin adoption grows, Ethereum appears poised to benefit most, hosting the majority of activity related to them. If the market expands to $2 trillion, as some officials suggest, Ethereum’s revenues could multiply tenfold. This will also have a positive impact on competing blockchains like Solana.
Stablecoins play a significant role in shaping new trends in financial markets, and their continued development will have serious implications for both blockchain technology and traditional financial systems.
