$FUN

Yield-bearing stablecoins reach USD 11 billion and already represent 4.5% of the market, according to a report

Yield-bearing stablecoins have surged to 11 billion dollars, driven by regulatory changes and increasing user demand, with Pendle capturing 30% of the market.

Yield-bearing stablecoins have soared to 11 billion dollars in circulation, representing 4.5% of the total stablecoin market: a strong rise from just 1.5 billion dollars and a market share of 1% at the beginning of 2024.

One of the biggest winners of this trend is Pendle, a decentralized protocol that allows users to lock in fixed yields or speculate with variable interest rates. Pendle now accounts for 30% of the total value locked (TVL) of all yield-generating stablecoins, around 3 billion dollars, the firm said in a report shared with Cointelegraph.

Pendle noted that stablecoins represent 83% of its 4 billion dollars of total value locked, a strong increase from less than 20% just a year ago. In contrast, assets like Ether

ETH

2246 €

, which historically contributed 80-90% of Pendle's TVL, have dropped to less than 10% of its TVL.

Traditional stablecoins like USDt

USDT

0.8831 €

and USDC

USDC

0.8825 €

do not pay interest to holders. With over 200 billion dollars in circulation and U.S. Federal Reserve interest rates at 4.3%, Pendle estimates that stablecoin holders are missing out on more than 9 billion dollars in annual yield.