Stablecoin Surge: The Capital Underworld Behind $2.28 Trillion

While everyone is focused on Bitcoin's rise and fall, the real capital undercurrents are surging in the stablecoin market—by 2025, the total market value of this sector will exceed $2.28 trillion, a staggering increase of $33 billion from last year, with a 17% growth rate that outperforms traditional financial markets. But don’t be fooled by the apparent prosperity; this wave of growth hides three capital secrets.

The new policy from the White House seems to loosen regulations on stablecoins, but in reality, it plays a game of 'seeking to captivate while letting go.' What the report doesn’t mention is that the market value of USDC soared 39% in six months to $61 billion, precisely at a critical juncture of the Federal Reserve's digital dollar testing. While Circle is busy negotiating 'compliance co-branding' with regulators, this is far from market freedom of choice; it is clearly traditional financial giants resurrecting themselves, turning cryptocurrency into a testing ground for digital fiat.

USDT, with a market value of $155 billion, firmly holds the top position, but how much of the $18 billion increase is real demand? Look at the data: the trading volume share in emerging markets has dropped from 42% to 31%, while holdings by institutions in Europe and the US have reached an all-time high. What does this indicate? Tether is playing 'the East is not bright, the West is bright'—supporting its base with the Asian market, while it has essentially become a channel for Wall Street funds to wash dollars.

The report's hype about 'exploding payment scenarios' is more like the emperor's new clothes. USDC claims a surge in payment volume, but on-chain data shows that 78% of transactions occur on DEX platforms, with less than 5% actually used for merchant settlements. The so-called 'restoration of crypto trading activity' is nothing more than leveraged funds jumping back and forth in the derivatives market. When stablecoins degenerate into casino chips, this $2.28 trillion bubble is even more dangerous than when Luna collapsed in 2022.

Stablecoins are experiencing a carnival before the 'death spiral.' Trump's regulatory poker table has long been manipulated by institutions, USDT's dollar peg increasingly resembles a Ponzi scheme, and USDC's compliance narrative won't withstand the next bear market. When the Federal Reserve truly launches the digital dollar, these stablecoins will either be absorbed or buried.

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