The supply of yield-bearing stablecoins advanced from the passage of the genius Stablecoin Bill in July, which prohibits those who gave from the offer of yields to stablecoins.
Data shows the largest beneficiaries are Sky’s Etherna Usde (USDA) and USDS (USDS), which provides yield when tokens are stuck in their protocols.
Since July 18, the enhanced USDE supply has increased by 70% Up to 9.49 billion, market capitalization is placed in third place in all stablecoins.
Meanwhile, the migratory supply of USDS 23% At about 4.81 billion, the market capitalization of the fourth place is placed in all stablecoins, at the same time, according to Defillama.
The major increase in USDE supply has led to the ETA price, Etha’s management token, which rallies nearly 60% since mid-July, with a current price standing at $ 0.58, According to In coingecko.
The yield-bearing stablecoins are the winners of the Genius Act
“Surprisingly the winners of a post-genius-harvest-harvesting period provide a ton of a genius who does not allow them to the US,” co-founder of analytics firm Artemis, Anthony Yim, Says To an x post on Monday.
Related: State of Stablecoins After Genius Act: Experts weigh
Julio Moreno, head of cryptoquant research, told Cointelegraph that tokenholders were increasing in USDA and USDS as they provide yield by stating tokens in their protocols.
“Certainly because the Genius Act forbids those who provided the yield directly to the holders, the investors returned to the stablechoins with the harvest to harvest,” Moreno said.
“This is why you see stablecoins like the USDE and USDS expanding the supply, as they pay yield in more native ways (by staking within their own protocol).”
Stablecoin supply may hit $ 300 billion by the end of the year
The general Stablecoin market has grown from $ 205 billion to the start of the year to $ 268 billion at the time of writing, an increase of 23.5%, According to In Defillama.
Morena said the total stablecoin supply “could approach $ 300 billion by the end of the year, if the growth rate continued.”
Temujin Louie, CEO of Wanchain, said that Efforts in tokenization of traditional financial players The growth of stablecoins may hinder the growth.
“(…) The tokenization provides for funding market funds to adopt the speed and flexibility previously unique to Stablecoins, without sacrificing safety and regulation,” Louie said.
A July report indicates that the Demand for decentralized financial applications In the Ethereum network it can increase in the following the Genius Act which prohibits stablecoins carrying the yield.
Return of inflation
Ani-bearing stables generate yield by staking, lending or using real-world assets such as the US Treasurys, which generates passive income for their tokenholders.
Stable-bearing stablecoins allow tokenholders to earn a real rate of return to their possession. A real return rate is the adjusted inflation rate that a tokenholder receives.
The current rate of headline inflation in the US for the month of June stands on 2.7%.
In comparison, staked USDE (SUSDE) provides an annual percentage yield (APY) of 10.86%While staked USDS (SUSDS) gives an apy of 4.75%equivalent to a true return rate of 8.16% and 2.05% respectively.
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