MooMs-1

You don't need mindshare to find PMF.

I haven’t seen anyone mention this, but since Oct 2023, @PancakeSwap has closed every single month with positive earnings (stats via @tokenterminal).

There’s no incentive for talking about it. No (engagement farming) leaderboard. No points programs.

However, It’s currently the #2 protocol by revenue distributed to token holders (30d), only behind Hyperliquid.

• Hyperliquid: $63m
• Pancakeswap: $59m
• Tron: $55m

It’s also the #2 protocol by fees generated (30d), second only to Tether.

• Tether: $592m
• Pancakeswap: $274m
• Circle: $191m

0% mindshare.

2nd biggest business in crypto.

Let that sink in.

Two weeks later and $CRCL is trading like a 2021 altcoin.

$COIN and $HOOD are outperforming most of the market as well.

Wouldn’t be surprised to see a wave of new crypto IPOs and listings in the coming months, all getting the tradFi infinite bid.

At some point, one of these will mark the top.

And in hindsight, it’ll be obvious.

$SOL and $XRP ETF flows will give a good read on how the next few months will play out, once they are live.

Can USDC & USDT be dethroned?

Together, they account for 88.3% of the stablecoin market.

In third place, there is Ethena's $USDe, which is steadily growing.

On ByBit, traders are earning ~11% APY by using USDe as collateral instead of USDC or USDT (which offer 0% APY).

The yield component has played a key role in USDe's growth on the exchange, as the balance has reached approximately $500 million, only behind USDT.

Going forward, I expect CEX partnerships to keep growing in importance as the stablecoin space becomes more crowded.

See Circle, for instance, who's paying $60 million (+ revenue sharing) to Binance for their distribution deal.

Another thing is user behavior. Everyone will become more exigent as the space matures and at some point, the built-in yield will be mandatory to acquire and retain users.

Given those trends, I think @ethena_labs has a big chance to gain market share by repeating the ByBit playbook and integrating USDe across other major exchanges.

CEXs will be forced to provide users with yield, as @Bybit_Official is doing, and Ethena can provide that, thus expanding its distribution channels.

Below, I made some quick projections, using USDe’s current 8.7% market share on ByBit as "base case".

(Total stablecoin balances here include only USDT and USDC; data via @DefiLlama.)

In an optimistic scenario where Ethena can gain 15% of the market share on these four major exchanges, the USDe balance on CEXs could reach around $7.5 billion, representing a 1,400% increase from the current situation (all calculations exclude other venues).

Fyi, USDe's total supply is currently $5.9 billion, indicating a huge margin of growth if Ethena can secure these deals.

Share me below what protocols you are using for yield farming and why.

My current list includes:

@humafinance - PayFi (LPing)
@maplefinance - Private credit
@mETHProtocol - LST
@ethena_labs - Basis trading
@0xfluid - Lending
@upshift_fi - Curated vaults
@plumenetwork - Royco vaults

Would like to avoid crazy loops and high-leverage strategies.

ETH ETFs just outpaced BTC ETFs in daily inflows.

It's the first time ever.

And guess what?

This trend is only set to grow since ETF issuers still can’t stake their ETH.

However, that moment isn't far.

Just a few days ago, the SEC clarified that:

"Participation in a proof-of-work or proof-of-stake network as a “miner,” “validator,” or “staking-as-a-service” provider is not within the scope of the federal securities laws."

Meanwhile, @galaxyhq has already filed to add staking functionality to their ETH ETF.

All this means we'll soon see staking enabled across all ETFs.

Thus, I've run some calculations on what ETF providers could earn by staking their ETH.

Out of curiosity, I've also compared those numbers to the annual revenue of the world’s largest ETFs.

The results are astonishing.

• ETH ETF AUM: $11.1B (source: @SoSoValueCrypto)
• Native staking yield: ~3.15% (source: @Etherealize_io and @TreehouseFi)

Without considering restaking or other strategies to increase APR, staking just 40% of that $11.1B at today’s rate would outperform 9 out of the top 10 largest traditional ETFs

This is before accounting for any management or performance fees, which makes these numbers even more insane.

At this point, it’s clear that $ETH remains one of the best ways for TradFi (and for us) to tap into DeFi growth, get exposure to stablecoin adoption, and diversify from traditional assets and their risks.

Ultimately, all this benefits Ethereum, as with $ETH going higher, network security strengthens, further reinforcing its leading position.