The yield-bearing stablecoins rose to $ 11 billion in circulation, representing 4.5% of the total Stablecoin market, a steep climb from $ 1.5 billion and a 1% market sharing at the start of 2024.
One of the biggest winners is Pendle, a decentralized protocol that gives users to lock fixed produce or think of variable interest rates. Pendle now costs 30% of all yield-bearing stablecoin total amount locked (TVL), approximately $ 3 billion, the company said in a report shared with Cointelegraph.
Pendle noted that Stablecoins make up 83% of the $ 4 billion total amount locked, a sharp increase from less than 20% just a year ago. In contrast, the genitals such as ether (Eth), history that contributed 80%-90%of the pendle TVL, retreated to less than 10%.
Traditional stablecoins such as USDT (USDT) and USDC (USDC) Do not pass interest to holders. With more than $ 200 billion in circulation and the US federal reserves interest rates at 4.3%, Pendle estimated that Stablecoin holders were missing over $ 9 billion in annual harvest.
Related: How to use the ton ton for passive dollars yield in 2025
Growth of clarity benefits the stablecoins
The increase of Ani-bearing stablecoins Arrived amid the rise of regulatory clarity under the president’s administration of President Donald Trump.
In February, the US Securities and Exchange Commission Approved yield-bearing stablecoins As “certificates” subject to security regulation, rather than inhibit it. The approval allows yield-bearing stablecoins to operate under specific policies, including registration, disclosure requirements and investor protections.
Suggested bills such as Stablecoin Transparency and Accountability for a better Ledger Economy (Stable) and The Guide and Establishment of National Innovation for US Stablecoins (Genius) Signal in a desirable direction.
Meanwhile, Pendle said it is expected that Stablecoin issuance will double $ 500 billion in the next 18 to 24 months. The firm also expects ani-bearing stablecoins to get 15% of this market with $ 75 billion in release (7x growth from $ 11 billion).
Related: PayPal to offer 3.7% yield in StableCoin balances: Report
Pendle changes the focus to yield a market
Initially focused on Airdrop farming, Pendle moved toward serving as a layer of infrastructure for decentralized financial yield markets.
The USDE Stablecoin of Ethena is currently worth about 75% of Pendle’s Stablecoin TVL. However, newer incoming such as Open Eden, Reserve and Falcon increased part of non-USDE properties from 1% to 26% last year.
The pendle also expands across the Ethereum, with plans to support networks like Solana and to integrate with the upcoming Aave and Etherna converchain.
Interest in Strategies for producing yield within the cryptocurrency sector has progressed in recent years, driven by both retail and institutional investors seeking to maximize returns in their digital possessions.
On May 19, Franklin, a hybrid cash and crypto payroll provider, announced the launch of the Payroll Treasury yieldthat uses blockchain lending protocols to help companies earn payroll funds.
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