- Tether and Circle, in their infinite wisdom, seek to corral the stablecoin supply, raising the specter of centralization. How tiresome. 🙄
- Plasma’s XPL token, backed by Tether, might just explode should this stablecoin fad persist. One shudders at the thought. 💥
The market, it seems, is positively panting for stablecoin growth, if Circle’s IPO is anything to go by. One can only hope this enthusiasm is well-placed. 🤔
In a bid to further oil the stablecoin wheels, the old guard have plumped for separate and frightfully specialized ‘networks.’ Tether, bless their hearts, is pinning its hopes on Plasma for a streamlined USDT issuance, while Circle Payment Network (CPN) aims to smooth the path of global money transfers. One wonders if they’ve considered carrier pigeons. 🕊️
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Is Ethereum’s stablecoin dominance at risk?
Berckmans’s anxieties are hardly surprising, given Ethereum’s [ETH] stranglehold on the current stablecoin supply. One might even call it a monopoly. 🧐
Visa data reveals that the chain lords over $115 billion of the stablecoin market, followed by Tron [TRX] at a paltry $80 billion. The indignity! 😠
While it may be premature to quantify the grand impact of Tether-backed Plasma or Circle’s CPN on the stablecoin supply, Berckmans implores other issuers to focus on Ethereum. One hopes they’re taking notes. 📝
“Competitors of Tether and Circle, including new entrants such as tradfi firms and banks, should seek to launch ETH L2s that bundle the firms’ own new stablecoins, RWAs, onchain products, and owned distribution into a strategy similar to Base.”
Berckmans argues that stablecoin liquidity in Ethereum could boost DeFi opportunities and maximize yield. A noble cause, if ever there was one. 😇
Intriguingly, a similar rationale may lurk behind Tether’s dalliance with Plasma. According to Messari analyst Sam, Plasma would be a Bitcoin sidechain, enabling Tether to drive BTC DeFi and USDT offramps. How very Machiavellian. 😈
“Like Circle Payments Network, Plasma serves as a payments network for banking partners and custodians to support USDT offramps.”
Already, Plasma has witnessed a surge of investor interest, with $500M raised in mere minutes during Monday’s token sales [XPL]. The frenzy! 🤪
Should this stablecoin craze persist, Plasma’s XPL token could enjoy market interest akin to Circle’s IPO. One can only speculate on the consequences. 😶🌫️
Stablecoins, those digital dollars bridging crypto and traditional finance, find use in payments, remittance, and crypto trading. The sector has ballooned by 4,600% from $5B to $240B in the past five years. A rather vulgar display of wealth. 🤑
But the overall crypto market surged about 700% over the same period from $0.25 trillion to over $3 trillion. Such dizzying heights! 😵💫
However, gaining direct investment exposure to stablecoin growth has been a challenge until Circle’s IPO. CRCL stock leaped 300% from a pre-IPO value of $31 to over $122 before settling at $117 at press time. A rollercoaster of emotions, indeed. 🎢
If history repeats itself, Plasma’s XPL will be a key token to watch upon its launch. Place your bets, ladies and gentlemen. 💰
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2025-06-10 15:15