Background
On September 23, the USDC Treasury minted an additional 50 million USDC on Ethereum—Circle's second 50-million issuance in September alone. Similarly, Tether minted 1 billion USDT on Ethereum on September 16. Meanwhile, PayPal's PYUSD aggressively expanded into Solana's ecosystem through a partnership with lending protocol Kamino.
According to DeFiLlama, the total stablecoin market cap has grown by 32% in 2024, from $130 billion to $172 billion. Unlike other tokens, stablecoin issuance doesn't dilute value due to their dollar-pegged nature. Increased issuance typically signals rising demand and capital inflow—a bullish indicator.
Yet despite this growth, critics argue the current cycle lacks liquidity and new capital. How valid is the stablecoin-market correlation theory? What’s the actual relationship between issuance, crypto prices, and Total Value Locked (TVL)? Let’s examine the strategies of major stablecoin issuers.
USDC: Circle's Aggressive Expansion
Key Data
- Market Share: Dropped from 32% in March 2022 to 20.6% post-Silicon Valley Bank collapse.
Recent Issuance:
- Ethereum: Four 50M USDC batches in September (totaling 200M).
- Solana: Two 250M USDC batches in August.
- 2024 Growth: ~$800M added, with gradual市值 recovery.
Strategic Moves
- Investments: 12 deals via Circle Ventures, focusing on payments, RWA (e.g., Centrifuge), and infrastructure.
- IPO Plans: CEO Jeremy Allaire announced preparations for an IPO.
- AI Integration: Exploring USDC use in AI-agent wallet security at Solana BreakPoint.
👉 Discover how stablecoins fuel DeFi growth
USDT: Tether's Dominance and Diversification
Key Data
- Market Share: 70%, with ~50% circulating on TRON.
- 2024 Issuance: 100B USDT (10B increments on Ethereum/TRON).
- Revenue: $5.2B profit in H1 2024, driven by 0.1% mint/redemption fees.
Recent Developments
Diversification:
- Acquired 9.8% of agribusiness Adecoagro (September).
- $610M investment in GPU provider Northern Data Group (July).
- Launched Tether Evo (VC arm) covering AI, mining, and education.
PYUSD: PayPal’s Solana Play
Key Data
- Launch: August 2023; Solana integration in May 2024.
- Market Cap: $722M (3x growth in 2024).
- Risk Note: 78% of Solana PYUSD locked in Kamino (yields dropped from 13% to 7-8%).
Strategic Focus
- Investments: Chaos Labs (risk management), Ethena (yield-bearing stablecoins).
- Goal: Strengthen PayPal’s crypto payment ecosystem.
Stablecoins vs. Market Trends: The Correlation
Bitcoin Price & Stablecoin Market Cap
- 2021: Both rose—capital flowed into crypto.
- 2022: Both fell—investors exited.
- 2023-24: Recovery signals renewed interest.
DeFi TVL
Near-perfect alignment with stablecoin市值 growth. Increased issuance may restore liquidity across Bitcoin and altcoins.
FAQs
Q: Does stablecoin issuance guarantee market growth?
A: While issuance reflects demand, external factors (e.g., regulations) can impact outcomes.
Q: Why did PYUSD’s circulation drop recently?
A: Lower yields on Kamino reduced deposit incentives.
Q: How does Tether profit beyond fees?
A: Through investments in AI, mining, and agriculture.
👉 Explore crypto market trends
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct independent research.
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