The stablecoin market is thriving, new payment methods are rising.

Although the total market value of cryptocurrencies has significantly decreased, the stablecoin market continues to grow. The latest data shows that the total market value of stablecoins has reached $230.45 billion, a 56% increase compared to the same period last year. USDT dominates the market with a market value of nearly $144 billion, accounting for 62.6%. USDC follows closely with a market value of $59 billion.

Stablecoins, as a type of relatively stable value cryptocurrency, are usually pegged to fiat currencies such as the US dollar. Amid the volatility of the cryptocurrency market, the rise of stablecoins is seen as a demonstration of the consolidation of the dollar's dominance. Governments and financial institutions in various countries are also actively laying out plans in the field of stablecoins. Regions such as Hong Kong, Japan, and Thailand have successively introduced relevant policies to create a favorable environment for the development of stablecoins.

At the same time, many large banks and fintech companies around the world are actively advancing their own stablecoin projects. They hope to seize the cross-border payment market that may be reshaped by cryptocurrencies in the future. Various signs indicate that the crypto market is likely to迎来 a wave of unprecedented stablecoin bull market.

Main Types of Stablecoins

Stablecoins can be divided into the following categories based on the method of collateralization:

1. Fiat-collateralized stablecoins: issued with fiat currency as reserve support at a 1:1 ratio. Representative projects include USDT, USDC, etc.

2. Crypto asset collateralized stablecoins: Using other crypto assets as collateral, typically requiring over-collateralization to cope with volatility. Representative projects include USDS, GHO, etc.

3. Algorithmic stablecoins: Maintain price stability through algorithms, requiring little or partial collateral. However, in practice, the risks are high, as seen in the collapse of projects like Terra.

4. Emerging stablecoins: Combining various mechanisms, such as USDe using a Delta hedging strategy, and USD0 being collateralized by U.S. Treasury bonds. These types of stablecoins usually provide users with additional returns.

Stablecoins Drive Payment Innovation

Stablecoins are becoming an important transformative force in the payment sector. The payment settlement volume of stablecoins is expected to reach approximately $5.6 trillion in 2024, which is 20 times that of 2020. There are 20 million active addresses trading stablecoins each month, with over 120 million addresses holding stablecoins.

Compared to traditional payment systems, stablecoins and blockchain technology offer faster and lower-cost payment channels. They are particularly popular in emerging markets, where individuals and businesses in countries like Nigeria and Indonesia use stablecoins for cross-border remittances and trade payments, significantly improving efficiency and reducing costs.

Major blockchain platforms are also actively laying out stablecoin payments. Ethereum, Tron, and Binance Smart Chain lead in stablecoin trading volume, while emerging public chains like Solana, Base, and Pharos are also positioning payments as a core strategic direction.

Future Outlook

Stablecoins, as an important innovation in the field of cryptocurrency, are bringing new possibilities to the global financial system. In the future, the role of stablecoins in the digital financial ecosystem will become increasingly important. Regulatory attitudes will be a key factor in their development, and countries are gradually formulating corresponding regulatory frameworks.

From a more macro perspective, the greatest opportunity for stablecoins may not lie in their attributes as cryptocurrencies, but rather as a brand new payment method. In this round of the stablecoin bull market, we can expect to witness how stablecoins reshape the traditional payment market landscape.