The total supply of stablecoins has reached an all-time high, increasing 44% over the past two years.

investment strategies will profit from the mass adoption of stablecoins?

Author: Ignas

Author: Ignas

Compiled by: Tim, PANews

Compiled by: Tim, PANews

The total supply of stablecoins has hit a new all-time high, increasing by 44% over the past two years.

The total supply of stablecoins has hit a new all-time high, increasing by 44% over the past two years.

With mainstream traditional financial institutions now actively deploying the stablecoin market, which investment strategies will profit from the mass adoption of stablecoins?

With mainstream traditional financial institutions now actively deploying the stablecoin market, which investment strategies will profit from the mass adoption of stablecoins?

For added context, the Trump administration set August as a deadline for passing a stablecoin bill.

For added context, the Trump administration set August as a deadline for passing a stablecoin bill.

Previously, an increase in the supply of stablecoins tended to push up cryptocurrency prices as people held them for short periods of time, primarily for speculative trading.

Previously, an increase in the supply of stablecoins tended to push up cryptocurrency prices as people held them for short periods of time, primarily for speculative trading.

Today, the use of stablecoins has gone beyond speculation. For example, SpaceX uses stablecoins to recover funds from its Starlink sales in Argentina and Nigeria, and artificial intelligence company ScaleAI also uses stablecoins to pay overseas contractors.

Today, the use of stablecoins has gone beyond speculation. For example, SpaceX uses stablecoins to recover funds from its Starlink sales in Argentina and Nigeria, and artificial intelligence company ScaleAI also uses stablecoins to pay overseas contractors.

The simplest investment strategy is to bet on the track where mainstream institutions may issue new stablecoins.

The simplest investment strategy is to bet on the track where mainstream institutions may issue new stablecoins.

Ethereum, Base, Tron and Solana are the main public chains for the current issuance of stablecoins.

Ethereum, Base, Tron and Solana are the main public chains for the current issuance of stablecoins.

It is worth noting that although SOL has dominated this round of bull market, the growth of stablecoins on the Solana chain is relatively slow. Currently, only the Base chain has successfully sat on the stablecoin competition table with USDC.

It is worth noting that although SOL has dominated this round of bull market, the growth of stablecoins on the Solana chain is relatively slow. Currently, only the Base chain has successfully sat on the stablecoin competition table with USDC.

Since the Base chain itself does not issue tokens, Coinbase's stock (NASDAQ: COIN) may become a potential target.

Since the Base chain itself does not issue tokens, Coinbase's stock (NASDAQ: COIN) may become a potential target.

Another strategy is to wait for the IPO of Circle, the issuer of USDC, or choose to invest in Visa or PayPal stocks.

Another strategy is to wait for the IPO of Circle, the issuer of USDC, or choose to invest in Visa or PayPal stocks.

In addition to transactions and payments, stablecoins are also used to earn returns in DeFi:

In addition to transactions and payments, stablecoins are also used to earn returns in DeFi:

Therefore, if the supply of stablecoins continues to expand, mature DeFi protocols may become the main beneficiaries:

Therefore, if the supply of stablecoins continues to expand, mature DeFi protocols may become the main beneficiaries:

- Aave/Morpho/Euler/Fluid

- Aave/Morpho/Euler/Fluid

- Uniswap/Curve

- Uniswap/Curve

- Maker

- Maker

-Ethena

Firm

Increased stablecoin supply → Pushing up the total locked value (TVL) on the chain → Increased protocol fee income → Increased token valuation (especially tokens with revenue sharing mechanisms)

Increased stablecoin supply → Pushing up the total locked value (TVL) on the chain → Increased protocol fee income → Increased token valuation (especially tokens with revenue sharing mechanisms)

Yield is a key factor affecting the dynamics of the stablecoin market:

Yield is a key factor affecting the dynamics of the stablecoin market:

For example: PayPal’s stablecoin PYUSD is now available on Solana and Ethereum, but its growth has been slow.

For example: PayPal’s stablecoin PYUSD is now available on Solana and Ethereum, but its growth has been slow.

Solana once used the high annualized returns of the Kamino protocol to incentivize an increase in the

Solana once used the high annualized returns of the Kamino protocol to incentivize an increase in the