• This week's rise is mainly related to the U.S. stablecoin legislation, particularly the progress of the GENIUS Act. (Vote today)

• The market's optimistic sentiment towards regulatory clarity seems to be the main driving force, and increased institutional interest may also contribute to the rise.

• Most believe this is also a bill recognizing DeFi.

Legislative Impact 👀

The bill could provide a clear regulatory framework for stablecoins, increasing investor confidence and boosting demand, particularly for U.S. Treasury bonds, which may indirectly benefit DeFi projects on the Ethereum mainnet, such as Curve (stablecoin DEX), MakerDAO (SKY), AAVE, Compound, and Ethena.

"Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act" (GENIUS Act)

The bill requires that stablecoins must be backed by 100% cash in U.S. dollars or short-term U.S. Treasury bonds, protecting stablecoin holders and preventing criminal or terrorist financing abuses.

Potential Beneficiaries of ETH Mainnet DeFi Projects 👀👀

• Curve: As a stablecoin DEX, Curve facilitates low-cost, low-slippage trading between stablecoins.

The increase in stablecoin usage is expected to significantly boost Curve's daily trading volume (currently averaging about $300 million per day).

• MakerDAO (SKY): MakerDAO issues the decentralized stablecoin DAI, and regulatory clarity may enhance the stability and adoption of DAI, indirectly increasing the value of its governance token MKR.

• AAVE and Compound: These two lending protocols allow users to borrow and lend cryptocurrencies, often using stablecoins as collateral. The increase in stablecoin usage will drive liquidity and lending activity on both platforms.

AAVE, due to its market share and innovation speed, may benefit more than Compound.

• Ethena: Provides synthetic dollars (USDe) and other assets, relying on the stablecoin ecosystem. The increase in stablecoin demand may enhance the demand for its synthetic assets, especially in leveraged trading.