stabilcoin

Circle CEO Jeremy Allaire believes that regulatory clarity is the most important factor that will pave the way for increased use of stablecoins in the cryptocurrency market in 2024. In a new interview with CNBC International TV, Allaire predicts that Bitcoin ETFs recently approved in the U.S. will act as the “tide that lifts all boats” in the crypto sector. Second Largest Stablecoin by Market CapCircle CEO says stablecoins have been resilient despite crypto market volatility over the past few years “What I can say about stablecoins and what we see in the market is that a lot of people were focusing on the many scandals, failures and bankruptcies in this industry, but we were also seeing tremendous progress in the continued development of technology. This is a bit like what happened after the internet boom and bust. People ignored the consumer internet and e-commerce, but technology continued to improve and we saw the same thing happen last year. In particular, we see that stablecoins are the most important application of blockchain technology and that their use is increasing worldwide.”Circle issues USDC, the second largest stablecoin in terms of market value. The company announced last week that it has filed a draft registration statement regarding its initial public offering (IPO) offering with the Securities and Exchange Commission (SEC).

#DEFİ #DefiMonеy #stableBTC #stabilcoin #BinanceHerYerde

Another “DeFi Summer” is unfolding in what has traditionally been the most-speculative corner of crypto, with activity surpassing levels seen before the collapse of the TerraUSD stablecoin that sent the sector reeling almost two years ago.
Once again, stablecoins are at the center of activity in decentralized finance, where proponents claim the elimination of intermediaries such as banks and brokers through the use of software-driven applications will democratize finance. Stablecoins, which track a real-world asset like the dollar, allow participants to avoid converting to and from fiat money at every turn in the often volatile sector.
The name DeFi Summer was coined in 2020 when activity surged after the emergence of so-called liquidity mining and yield farming programs that offered participants double-digit-percentage returns for lending their crypto. DeFi is now logging some of its strongest metrics yet. There are more users transacting on DeFi, borrowing stablecoins on peer-to-peer lenders and providing liquidity in exchange for token rewards, according to data compiled by Zack Pokorny, analyst at digital-asset firm Galaxy. But the speculation-fueled growth has also revived questions about the sustainability of the sector.
“It reminds me of the DeFi summer,” said Rachel Lin, co-founder and chief executive officer of the DeFi derivatives exchange SynFutures. “The difference being the overall yields are much higher.”
Indeed, the weighted interest rates for borrowing stablecoins on longtime DeFi lending platforms such as Aave and Compound have spiked to nearly 18%, highlighting the market’s insatiable demand for stablecoins to use for transactions.

DeFi Demand Reaches New Highs
Interest rates for stablecoins go up on Aave, Compound
Much of the growth is being driven by pure speculation, as the digital-asset market has seen dramatic price appreciation this year amid the successful launch of several spot Bitcoin exchange-traded funds in the US.
“I think of DeFi as a reflexive loop,” said Michael Rinko, research analyst at digital-asset firm Delphi Digital. “Prices go up, demand for leverage goes up, on-chain borrowing goes up, rates up go, stablecoin flows go up chasing yield, prices go up.”
Meanwhile, a software upgrade on the Ethereum blockchain in March has also helped fuel the growth. One result of the upgrade, known as Dencun, is significantly lower costs for trading on so-called Layer 2 blockchains that overlay Ethereum. Dencun made blockchains like Blast, Coinbase-launched Base and others more competitive against blockchains like Solana, which also has seen a major recovery and comeback since the collapse of Sam Bankman-Fried’s FTX exchange.

Ethereum's Dencun Upgrade Drives Record High Activities
Transaction counts reach historical highs on layer 2 blockchains

“Declining fees has kind of given people some perspective of like ‘oh wow I could just go try this,’” said Galaxy’s Pokorny.
‘Degens’ Are Back
With low transaction fees, activity has surged in some of the most speculative parts of DeFi such as memecoins and points — which are airline-like loyalty programs by projects and are meant to attract more devoted users. Memecoins, which are tokens with very little utility, are thriving even more on decentralized exchanges, or DEXs, than their centralized counterparts, since memecoins can get listed almost instantly on the peer-to-peer platforms. While the loyalty points pushed out by many new crypto startups have come with few guarantees, enthusiastic fans also are aggressively collecting them, anticipating future rewards of tokens, often referred to as airdrops.
“DeFi is pretty speculative and these point systems and airdrops and all this stuff are really driving a big amount of the activity,” said Pokorny.
SynFutures’ Lin said that the rising appetite for riskier assets in DeFi is driven by the “you only live once” or YOLO sentiment among investors.
“So far, from what I’ve seen, it’s still mostly degens, meaning most of those entering the space are not new,” she said, referring to the crypto slang for “degenerate” traders who have higher risk appetites.
DeFi advocates have cited newcomers such as EigenLayer, which is now the second-biggest project by the total value of cryptocurrencies sent to the platform, for helping fuel the resurgence. EigenLayer received $100 million in capital from Andreessen Horowitz in February, as venture investments in crypto recovered from the lows last year.
Eigen Layer facilitates a process called “restaking,” which is a takeoff on the method that runs Ethereum, where tokens are deposited or “staked” to the network to help validate transactions on the blockchain. Restaking allows new projects building on top of Ethereum to lever the blockchain’s security for their own network. So far, more than $15 billion of deposits are on Eigen Layer, according to data tracker DeFi Llama.
As newer projects such as EigenLayer take off, supporters remain optimistic about DeFi’s future.
“Decentralized systems and finance, smart contracts and all this stuff like speculation is our way of proving that it works,” said Pokorny. It’s “just our way of showing this is a viable infrastructure that we can then sub in real assets for.”
Or until the latest DeFi summer fades.

💵 BNB Chain has announced a gasless payment solution for stablecoins USDT, USDC, and FDUSD.

The development will be carried out in partnership with centralized exchanges. The initiative aims to simplify the use of stablecoins, allowing for faster integration into everyday life. $BNB

🔗 Bitget Wallet and SafePal have already integrated the gasless solution. The Binance Web3 wallet and Trust Wallet will follow suit soon.
#BNBAnalysis #stabilcoin #gas_fees #DODOEmpowersMemeIssuance

#Ripple💰 has issued a warning to its users about false claims that its new stablecoin is already live. This warning comes as Ripple continues to face legal issues with the U.S. Securities and Exchange Commission (SEC), which has labeled the product an unregistered crypto asset.
XRP Community on Alert
Earlier this year, Ripple announced its plans to launch a #stabilcoin called RLUSD, which will be pegged 1:1 to the U.S. dollar. The stablecoin is set to be available on the XRP Ledger (XRPL) and Ethereum ( #ETH🔥🔥🔥🔥 ). Ripple’s CEO, Brad Garlinghouse, stated that the RLUSD could serve as a bridge between the cryptocurrency industry and traditional finance. Some analysts even predict that its launch could positively affect the price of #Xrp🔥🔥 .
Last week, Ripple minted over 800,000 RLUSD on both XRPL and Ethereum, representing 99% of the total planned supply. This triggered speculation that RLUSD was already live. However, Ripple assured the public that the stablecoin is still in private beta testing and warned against individuals claiming otherwise.

SEC Controversy Continues
While the upcoming stablecoin has stirred excitement within the #CryptoCommunity" , not everyone welcomed the news. The U.S. Securities and Exchange Commission (SEC) labeled RLUSD as an "unregistered crypto asset," adding yet another chapter to the ongoing legal dispute between Ripple and the SEC.
This legal battle began in December 2020 when the SEC sued Ripple for the unregistered sale of XRP tokens. In August 2024, the case reached a key milestone when Judge Torres ruled that XRP sales to retail investors on secondary markets did not violate securities laws. However, Ripple was still ordered to pay a fine of $125 million.
This fine is significantly lower than the original $2 billion demanded by the SEC, which many consider a major victory for Ripple. Both parties have the option to appeal by October 7, and it is expected that the SEC will do so, as rumors of such a move have been circulating. U.S. attorney Fred Rispoli estimates that there is a 60% chance the SEC will appeal.

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