According to PANews, the stablecoin sector is anticipated to experience fierce competition, leading to a 'battle of hundreds of coins.' Despite this, USDT is expected to remain the leader among offshore stablecoins, while USDC will continue to dominate the compliant stablecoin market. However, numerous mid-tier and lower-tier stablecoins are likely to emerge.
These stablecoins can be categorized into two main types: compliant stablecoins developed by Web2 companies and decentralized stablecoins created by Web3 companies. Web2 companies are expected to thrive in specific regions and business scenarios, such as Hong Kong's HKD stablecoin and e-commerce platforms like JD.com. These stablecoins can integrate deeply with local enterprises and business operations, areas where USDC and USDT might not reach.
From a political standpoint, countries aim to prevent capital outflow and the siphoning effect of the U.S. dollar by promoting stablecoins tied to local currencies. This strategy helps retain funds within their financial systems. The current exchange landscape serves as a reference, with major exchanges dominating alongside numerous smaller ones that survive by focusing on niche markets and altcoins.
Web3 companies are also expected to succeed with decentralized stablecoins. The U.S. and Hong Kong have proposed regulations prohibiting stablecoin companies from offering interest to users, aiming to position stablecoins as payment tools rather than investment vehicles competing with bank deposits. Despite this, there is strong demand for interest-bearing stablecoins, especially from businesses and large investors seeking stable returns.
Web3 companies can circumvent compliance restrictions by packaging CeFi and DeFi financial products as stablecoins, offering users stable or even high returns. Neutral strategy stablecoins, such as Ethena's USDe and BitFi within the Bitcoin ecosystem, exemplify this approach. By utilizing perpetual contracts, projects can maintain a neutral position, ensuring stable value regardless of market fluctuations, while providing interest income to stablecoin holders.
In summary, the stablecoin market resembles an iceberg: compliant stablecoins like USDC dominate the visible portion, with regional compliant stablecoins also present. Offshore stablecoins, led by USDT, occupy the larger submerged section. Beyond the reach of USDC and USDT, a multitude of stablecoins exist, including those tailored to specific business scenarios and decentralized interest-bearing stablecoins.
