The recent GENIUS Act has significantly impacted the stablecoin market, leading to an increase in the supply of coins that offer yields. This article examines how this change has affected specific projects.
Impact of the GENIUS Act on the Stablecoin Market
Since the passage of the GENIUS Act in July, which prohibits issuers from providing yields on stablecoins, there has been an increase in interest in coins that offer yield through staking. Co-founder of analytics firm Artemis, Anthony Yim, noted that "surprising winners in a post-GENIUS era are yield-bearing stablecoins."
Increase in Supply of Stablecoins
Since July 18, the supply of Ethena USDe has surged by 70%, reaching $9.49 billion, putting it in third place among all stablecoins. Meanwhile, the supply of Sky’s USDS increased by 23%, totaling nearly $4.81 billion, making it the fourth-largest stablecoin. This increase is also reflected in the demand for their respective governance tokens.
Future Predictions for Stablecoins
The overall stablecoin market has grown from $205 billion at the start of the year to $268 billion. According to Julio Moreno, Head of Research at CryptoQuant, "total stablecoin supply could approach $300 billion by the end of the year." However, some experts caution that increasing tokenization efforts by traditional finance could hinder this growth.
In summary, the passage of the GENIUS Act has had a significant impact on the stablecoin market. Projects offering staking have shown remarkable growth in both volume and demand. Moving forward, the overall market volume is expected to rise, although potential obstacles remain.
