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Lending

Lending protocols form the backbone of the decentralized money market, allowing users to lend or borrow digital assets without intermediaries. Using smart contracts, platforms like Aave and Morpho automate interest rates based on supply and demand while requiring over-collateralization for security. The 2026 lending landscape features advanced permissionless vaults and institutional-grade credit lines. This tag covers the evolution of capital efficiency, liquidations, and the integration of diverse collateral types, including LSTs and tokenized RWAs.

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Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Crypto groups urge BoE to scrap £10K limit, call stablecoin cap harmful and unenforceable

Crypto groups urge BoE to scrap £10K limit, call stablecoin cap harmful and unenforceable

The post Crypto groups urge BoE to scrap £10K limit, call stablecoin cap harmful and unenforceable appeared on BitcoinEthereumNews.com. Crypto firms across the UK and US are demanding that the BoE ditch its plan to cap stablecoin holdings at £10,000–£20,000 for individuals and £10 million for companies. This plan, according to Financial Times, would make the UK the only major jurisdiction trying to lock users out of full access to stablecoins, at a time when both the US and EU are expanding regulatory clarity without placing hard limits. The move, if enforced, would set the UK apart in a way that critics say looks paranoid and counterproductive. Officials inside the BoE argue that caps are necessary to keep Britain’s banking system stable as crypto expands. They say too much money flowing into stablecoins could drain bank deposits, cut off credit, and cause a ripple effect across lending markets. Sasha Mills, who heads financial market infrastructure at the bank, said the idea is to prevent “large and rapid outflows of deposits” and limit the impact of new payment systems while they scale. But she also called the measure “transitional,” suggesting it might not be permanent, though there’s no actual timeline or plan to phase it out. Coinbase says caps are bad for savers and the City Tom Duff Gordon, Coinbase’s policy chief outside the US, said, “Imposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling.” He pointed out that no other major country, not even under Donald Trump’s renewed presidency, has tried anything like this. And it’s not just about ideology; crypto payments are already global, and Tom made it clear that these limits would slam the UK into a corner while the rest of the world moves on. Simon Jennings, who leads the UK Cryptoasset Business Council, added that enforcing the BoE’s idea would be a technical nightmare. “Limits simply don’t…

Author: BitcoinEthereumNews

2025/09/15

Best Cryptos Buy Now and Turn $500 into $25,000

Best Cryptos Buy Now and Turn $500 into $25,000

The post Best Cryptos Buy Now and Turn $500 into $25,000 appeared on BitcoinEthereumNews.com. Few projects are generating headlines as frequently as Pepe Coin (PEPE) and Mutuum Finance (MUTM). Mutuum Finance is emerging as the most-touted opportunity for retail traders considering the potential to turn low stakes into massive gains. The venture has raised over $15.8 million from over 16,300 supporters during presale. Aside from Pepe (PEPE), Mutuum Finance stands out as one of the innovators with its new positioning in a crowded market, fueling rumination on whether it would be the next giant breakout story in the crypto economy. PEPE Trades Near $0.000012 as Meme-Token Activity Persists PEPE (PEPE) is trading at $0.00001214. The token has recorded a double-digit 24-hour advance and high volume relative to its recent averages, suggesting short-term buying interest.  Because PEPE is a social meme token, the price remains sensitive to social and on-chain sentiment, which creates wild intraday whips within the range of the week.  Market watchers are monitoring volume and resistance at the recent weekly highs for follow-through, while new DeFi opportunities such as Mutuum Finance are also receiving attention.  Mutuum Finance Presale Speed up Mutuum Finance (MUTM) is performing well in presale phase six, securing tremendous traction as investors’ volumes keep soaring. The project has already hit over 16,300 recorded owners and has reached over $15.8 million in locked-up capital, with recent activities showing that the pace will continue to increase. Such a humongous boost is a clear indicator of growing investors’ confidence as the platform continues to inch closer to going live. Strategic Value for First Movers Not only are investors buying at the presale price exposing themselves to tokens at significantly lower cost, but they are also setting themselves up for astronomical short-term returns of up to 300% on launch day one, and even greater long-term opportunity as the ecosystem continues to expand. Early…

Author: BitcoinEthereumNews

2025/09/15

dForce Proposes Onboarding Yuan-Pegged AxCNH Stablecoin

dForce Proposes Onboarding Yuan-Pegged AxCNH Stablecoin

The post dForce Proposes Onboarding Yuan-Pegged AxCNH Stablecoin appeared on BitcoinEthereumNews.com. dForce proposes integrating AxCNH, a yuan-pegged stablecoin, to expand compliant CNH yield opportunities and reshape global DeFi markets. dForce, a well-known DeFi infrastructure platform, has put forward a new proposal. The proposal suggests integrating the offshore Chinese Yuan-pegged stablecoin, AxCNH, into its ecosystem. AxCNH is issued by a fintech company based in Hong Kong – AnchorX. This stablecoin will be initially introduced on the Conflux blockchain via Unitus Finance, one of the lending markets of dForce. AxCNH Stablecoin Launches on Conflux eSpace with Growing Support To begin with, this move makes dForce an early supporter of CNH-based DeFi products. According to the proposal, this strategy helps the platform to meet its goal of becoming the “Gateway to Compliant CNH Yield on Chain.” Although currently AxCNH has a low liquidity and trade activity, the long-term prospects of this look promising. As more people are interested in using CNH stablecoins, early adoption may bring about some great benefits. Related Reading: Intense Demand for Hong Kong’s New Stablecoin Licensing Program | Live Bitcoin News In addition, AnchorX is already recognized as a regulatory pioneer. In June 2025, the company got a stablecoin-related approval by the Astana Financial Services Authority (AFSA) of Kazakhstan. This was an important step for its expansion in the world. AxCNH launched (July of 2025) on Conflux eSpace, with liquidity pools now live on Swappi DEX. Despite a small market cap, the stablecoin is well backed by CNH reserves and redeemable at a 1:1 ratio. Moreover, dForce believes that CNH stablecoins can form a major part of the global DeFi market. China’s overall ambition to pursue yuan internationalization is supportive of this trend. After a significant fall in the US dollar in early 2025, there was an increase in the interest in alternatives such as CNH. Financial institutions and tech…

Author: BitcoinEthereumNews

2025/09/15

MemeCore HALLOMEME Festival: Unleash the Thrilling World of Memecoins at Lotte World!

MemeCore HALLOMEME Festival: Unleash the Thrilling World of Memecoins at Lotte World!

BitcoinWorld MemeCore HALLOMEME Festival: Unleash the Thrilling World of Memecoins at Lotte World! Are you ready for an event that truly merges the digital world of memecoins with real-world thrills? Get ready to mark your calendars! MemeCore, a groundbreaking global Layer 1 project dedicated to memecoins, is set to host an absolutely electrifying event: the MemeCore HALLOMEME festival. This unique celebration is designed specifically for its dedicated M token holders, promising an unforgettable experience at the iconic Lotte World in Jamsil, Seoul. What is the MemeCore HALLOMEME Festival All About? The upcoming MemeCore HALLOMEME festival is far more than just a gathering; it’s a pioneering fusion of internet culture, community engagement, and pure entertainment. Scheduled for September 23rd, this spectacular event will run from 2:00 p.m. to 8:00 p.m. UTC. Imagine an entire amusement park transformed into a hub where the vibrant energy of memes meets the competitive spirit of esports and the beloved appeal of fan-related intellectual property (IP). Attendees will have the unique opportunity to: Explore Lotte World, enjoying its thrilling rides and attractions. Network with fellow M token holders and the MemeCore team. Immerse themselves in a festival atmosphere that champions meme culture. This event represents a significant step for MemeCore, bridging the gap between digital asset ownership and tangible, exciting experiences. It’s a testament to the project’s commitment to building a strong, engaged community around its native M token. Who Can Join the MemeCore HALLOMEME Festival Fun? Access to this exclusive celebration is reserved for holders of MemeCore’s native M token. If you’re an M token holder, you’re invited to be part of this groundbreaking event. The process to secure your spot is straightforward, ensuring that genuine community members are prioritized for attendance at the MemeCore HALLOMEME festival. Here’s how M token holders can register: Step 1: Register your interest through the Luma platform. Step 2: Await approval from the MemeCore team to confirm your attendance. This selective approach ensures a high-quality experience for all participants, fostering a true sense of community among M token enthusiasts. It’s an opportunity not just to have fun, but to connect with like-minded individuals who share a passion for memecoins and the MemeCore vision. Preparing for Your Unforgettable HALLOMEME Experience To fully engage with all the exciting activities planned for the MemeCore HALLOMEME festival, there’s one essential digital tool you’ll need: the MeCo Wallet. This dedicated wallet will be crucial for participating in the on-site stamp event, a feature designed to add an interactive layer to your festival exploration. Before heading to Lotte World: Make sure to download the MeCo Wallet to your device. Familiarize yourself with its basic functions to ensure a smooth experience on the day. The stamp event encourages attendees to explore different areas of the festival, rewarding their engagement and adding an element of discovery to the day. It’s a fun way to interact with the festival’s various offerings and collect unique digital mementos of your time at the MemeCore HALLOMEME festival. Why the MemeCore HALLOMEME Festival Matters for Memecoin Culture The organization of the MemeCore HALLOMEME festival is a significant milestone for the broader memecoin ecosystem. It demonstrates a commitment to tangible community building beyond purely digital interactions. By bringing together elements of amusement, esports, and popular culture, MemeCore is setting a new standard for how blockchain projects can engage their user base. This event: Elevates the perception of memecoins from mere speculative assets to cultural phenomena. Provides a real-world platform for networking and collaboration within the community. Showcases MemeCore’s innovative approach to blending technology with entertainment. It’s an exciting time for M token holders and the wider crypto community, as MemeCore continues to push boundaries and create memorable experiences. The festival is not just about fun; it’s about solidifying the identity and community spirit of a rapidly evolving digital asset class. In conclusion, the upcoming MemeCore HALLOMEME festival at Lotte World promises to be a landmark event, perfectly blending the playful spirit of memes with the vibrant energy of a real-world celebration. For M token holders, it’s an unparalleled opportunity to connect, celebrate, and experience the future of memecoin culture firsthand. Get ready for an epic day of fun, community, and innovation! Frequently Asked Questions (FAQs) About the MemeCore HALLOMEME Festival Q1: When and where will the MemeCore HALLOMEME festival take place? A1: The festival is scheduled for September 23rd, from 2:00 p.m. to 8:00 p.m. UTC, at Lotte World in Jamsil, Seoul. Q2: Who is eligible to attend the MemeCore HALLOMEME festival? A2: The event is exclusive to holders of MemeCore’s native M token. Registration and approval through the Luma platform are required. Q3: What kind of activities can attendees expect at the festival? A3: Attendees can enjoy amusement park rides, explore meme and fan-related IP integrations, participate in esports activities, and network with other M token holders. There will also be an on-site stamp event. Q4: Do I need a special app or wallet for the MemeCore HALLOMEME festival? A4: Yes, you will need to download the MeCo Wallet to participate in the on-site stamp event and fully engage with certain festival activities. Q5: Why is MemeCore hosting this HALLOMEME festival? A5: MemeCore is hosting the festival to foster community engagement, bridge the gap between digital assets and real-world experiences, and celebrate meme culture with its dedicated M token holders, strengthening the project’s ecosystem. If you found this article exciting and informative, consider sharing it with your friends and fellow crypto enthusiasts on social media! Let’s spread the word about the innovative spirit of the MemeCore community. To learn more about the latest crypto market trends, explore our article on key developments shaping memecoins institutional adoption. This post MemeCore HALLOMEME Festival: Unleash the Thrilling World of Memecoins at Lotte World! first appeared on BitcoinWorld.

Author: Coinstats

2025/09/15

ETH treasury firm BitMine scoops $200M of ETH, yet many ask what crypto to invest in for instant 500% gains

ETH treasury firm BitMine scoops $200M of ETH, yet many ask what crypto to invest in for instant 500% gains

While institutional investors like BitMine are buying up hundreds of millions of dollars’ worth of ETH, ordinary investors are looking for crypto ventures that will give them faster, more uneven gains. BTC and ETH price spikes have made the news, but a lot of new investors are wondering where they can put their money to make big profits without having to wait years. Mutuum Finance (MUTM) is becoming a platform that offers just that: overcollateralized lending, stablecoin minting, and staking-based rewards. MUTM is a great alternative to storingETH passively since it has new mechanisms and institutional-level security. It also lets regular investors take part in faster growth.Mutuum Finance (MUTM) is designed to protect investors’ money while also providing a steady return. Borrowers have to overcollateralize, which makes a buffer that keeps the protocol safe from abrupt drops in asset values. Liquidation processes make sure that positions that drop below safety levels are dealt with right away, and liquidators are given bonuses to keep the system healthy. The stable interest rate model gives borrowers predictable repayment schedules and lets the protocol adjust rates when the market is very unstable. This combination makes sure that people may confidently earn yield, lend money, or stake mtTokens, even when crypto values go up and down or the market as a whole corrects itself.ETH treasury firm BitMine scoops $200M of ETHOn September 12, 2025, BitMine, a big treasury corporation, bought $200 million worth of Ethereum (ETH). This raised the price of ETH to about $4,400, with a trading volume of $37.07 billion in 24 hours. The purchase is part of a larger trend of companies building up their treasuries, which shows that institutions have a lot of faith in Ethereum’s DeFi and layer-2 ecosystems. Technical indications reveal that ETH is testing the $4,150 support level, with the RSI at 48 and the resistance level at $4,500. People on social media are excited about BitMine’s shift and the planned Pectra upgrade, but there are concerns about things like US tariffs and $346.46 million in liquidations. If $4,500 clears, analysts say the aim is $4,868. But if it drops below $4,150, it might drop to $3,950.Mutuum Finance (MUTM): presale momentum and retail windowThe presale for Phase 6 of Mutuum Finance (MUTM) is now open, and each token costs $0.035. There are more than 16,300 holders taking part, and $15.66 million has been raised so far. 38% of the 170 million token supply has already been sold. The price will go up to $0.040 in the following phase, which means this is the last chance to get tokens at a discount before launch. Investors who bought in Phase 1 at $0.010 are already seeing gains of more than 250%.When MUTM lists at $0.20, investors who bought in Phase 6 will be able to get 500% returns. The platform’s restricted quantity of 4 billion tokens, staking incentives, and protocol buybacks all work together to keep the token’s price going up.Mutuum Finance (MUTM) lets regular investors actively make money while whales keep a lot of ETH. Lending yields, stablecoin minting, and staking programs all make money all the time. This makes a system that is always changing, like early DeFi successes like AAVE and UNI, which saw their prices go up 5–10X in their first few months. MUTM gives regular investors a way to get into this kind of high-growth environment that is easy to understand and offers both safety and predictable returns. The platform’s improved collateral efficiency makes it easier to borrow more money for linked assets. At the same time, carefully controlled deposit and borrow caps lower exposure to volatile tokens, which keeps the protocol stable.Mutuum Finance (MUTM) is more trustworthy since it has a CertiK audit score of 95, an AI-powered helpdesk service, partnerships with institutional roadmaps, and a $50,000 USDT Bug Bounty Program. These protections provide investors even more confidence that the platform is intended to handle complex operational and security needs as well as large rewards. So, early participants are joining a system that balances development potential with strong risk management. This gives them an obvious edge over people who just keep crypto.ConclusionInvestors who get in during Phase 6 are putting themselves in a position to make money like ETH did. The lack of tokens, along with early staking payouts and buyback programs, ensures that the price trend is maintained from many directions. The price will soon go up to $0.040, and 38% of the current phase has already been sold. This opportunity is closing fast. People who wait will miss the chance to own MUTM at a lower price, while people who act quickly will get positions in a protocol where smart money is making 500% gains by moving profits around.Mutuum Finance (MUTM) is for investors who want to combine safety, yield, and the chance to grow. Institutional ETH accumulation gets a lot of attention, but MUTM gives regular investors the ability to get involved in a fast-moving ecosystem with predictable payouts and significant upward momentum. Now is the time to get in, join early staking programs, and get in line with the next wave of attractive crypto investments before listing increases yields.For more information about Mutuum Finance (MUTM) visit the links below:Website: https://www.mutuum.comLinktree: https://linktr.ee/mutuumfinanceThe post ETH treasury firm BitMine scoops $200M of ETH, yet many ask what crypto to invest in for instant 500% gains appeared first on Invezz

Author: Coinstats

2025/09/15

From Small Beginnings to Big Returns: 8 High ROI Tokens in 2025 Ready for Explosive Growth

From Small Beginnings to Big Returns: 8 High ROI Tokens in 2025 Ready for Explosive Growth

Could choosing the right meme coin today set the stage for life-changing wealth tomorrow? Every crypto cycle sees a select few meme-driven tokens rise above the noise, rewarding early investors with extraordinary returns. As the search for high-ROI tokens intensifies in 2025, one truth stands clear: procrastination often means missing the next big cultural and […] The post From Small Beginnings to Big Returns: 8 High ROI Tokens in 2025 Ready for Explosive Growth  appeared first on Live Bitcoin News.

Author: LiveBitcoinNews

2025/09/15

Stablecoin Regulations: UK’s Controversial Limits Ignite Industry Fury

Stablecoin Regulations: UK’s Controversial Limits Ignite Industry Fury

BitcoinWorld Stablecoin Regulations: UK’s Controversial Limits Ignite Industry Fury The digital finance world is currently abuzz with significant news from the UK. The Bank of England has unveiled plans for stringent stablecoin regulations, proposing strict limits on how much individuals and corporations can hold. This move has certainly stirred the pot, igniting a fierce debate within the burgeoning crypto industry. Understanding the Proposed Stablecoin Regulations: What’s the Limit? The Bank of England is actively pursuing new rules to limit individual and corporate holdings of stablecoins. These proposed stablecoin regulations aim to cover all stablecoins currently in use or those that could potentially be used for payments across the UK, as reported by the Financial Times. Individual Limits: Under the plan, individuals would be capped at holding between £10,000 and £20,000 (approximately $12,700 to $25,400). Corporate Limits: The limit for corporations would be £10 million (around $12.7 million). These caps are designed to manage potential risks, but they have quickly become a point of contention. Why Are These Stablecoin Regulations Sparking Such Strong Opposition? The local crypto industry has not taken kindly to these proposed stablecoin regulations. They argue that such strict measures would put the UK at a significant competitive disadvantage compared to other nations embracing digital assets more openly. Moreover, implementing these limits presents considerable practical challenges: Administrative Difficulty: Tracking and enforcing these caps across numerous platforms and wallets would be a monumental task. Excessive Cost: The administrative burden would translate into substantial costs for businesses, potentially hindering innovation and growth within the sector. Industry leaders believe these rules could stifle the very innovation the UK Treasury is trying to foster. The Central Bank’s Rationale: How Do Stablecoin Regulations Protect Traditional Finance? While the crypto industry sees hurdles, the Bank of England views these stablecoin regulations as essential for maintaining financial stability. Their primary concern revolves around the potential impact on traditional banking. The central bank believes that widespread adoption of stablecoins could: Reduce Bank Deposits: If people and businesses shift their funds into stablecoins, it could lead to a decrease in deposits held by commercial banks. Impact Lending: A reduction in bank deposits might, in turn, negatively impact banks’ ability to lend money to individuals and businesses, potentially slowing economic growth. From the Bank of England’s perspective, these regulations are a preventative measure to safeguard the existing financial ecosystem. Navigating the Divide: UK Treasury’s Vision vs. Strict Stablecoin Regulations This move by the Bank of England highlights a growing divide within the UK’s financial leadership. On one side, the central bank is pushing for cautious and stringent stablecoin regulations. On the other, the UK Treasury is actively working to support stablecoins and broader tokenization efforts, viewing them as key to the nation’s future as a global financial hub. The Treasury sees stablecoins as a foundational element for future financial innovation, enabling more efficient and cost-effective payments and asset transfers. This dichotomy presents a complex challenge for the UK as it seeks to balance innovation with regulatory oversight. What’s Next for Stablecoin Regulations in the UK? A Path Forward The debate around these proposed stablecoin regulations is far from over. The friction between the central bank’s cautious approach and the industry’s call for innovation underscores the need for careful consideration and dialogue. For businesses and individuals in the UK, understanding these evolving regulations will be key. Engaging constructively with policymakers and providing feedback on the practical implications of such limits could help shape a more balanced outcome. The future of digital assets in the UK hinges on finding a regulatory framework that fosters growth while ensuring stability. In essence, the Bank of England’s proposed stablecoin regulations represent a critical juncture for the UK’s crypto sector. While aiming to protect financial stability, these measures risk alienating an innovative industry. The ongoing dialogue between regulators, government, and the crypto community will ultimately shape the future trajectory of digital assets in the UK, determining whether it becomes a leader or a laggard in the global digital economy. Frequently Asked Questions (FAQs) 1. What are stablecoins? Stablecoins are a type of cryptocurrency designed to minimize price volatility. They achieve this by pegging their value to a stable asset, such as fiat currency (like the US dollar or British pound) or commodities (like gold). 2. Why is the Bank of England proposing these stablecoin regulations? The Bank of England is concerned that widespread adoption of stablecoins could reduce bank deposits, potentially impacting banks’ ability to lend money and thereby affecting financial stability and economic growth. 3. How do the proposed limits for individuals and corporations differ? Under the proposal, individuals would be capped at holding between £10,000 and £20,000 in stablecoins, while corporations would face a limit of £10 million. 4. What is the crypto industry’s main concern regarding these stablecoin regulations? The crypto industry argues that these stringent limits would put the UK at a competitive disadvantage globally, create significant administrative difficulties, and incur excessive costs for businesses, potentially stifling innovation. 5. What is the UK Treasury’s stance on stablecoins? Unlike the Bank of England’s cautious approach, the UK Treasury is actively working to support stablecoins and broader tokenization efforts, viewing them as crucial for the UK’s future as a global financial hub. If you found this article insightful, consider sharing it with your network! Your support helps us continue to bring you critical updates on the evolving world of cryptocurrency and financial regulation. Let’s keep the conversation going! To learn more about the latest crypto market trends, explore our article on key developments shaping stablecoin regulations and their impact on institutional adoption. This post Stablecoin Regulations: UK’s Controversial Limits Ignite Industry Fury first appeared on BitcoinWorld.

Author: Coinstats

2025/09/15

Figure founder's open letter on listing: Why DeFi will eventually become the mainstream method of asset financing?

Figure founder's open letter on listing: Why DeFi will eventually become the mainstream method of asset financing?

By Mike Cagney Compiled by: Zhou, ChainCatcher Figure, a blockchain lending company, went public on the US stock market on September 11th. Its stock price surged as high as 44% on its first day of trading, bringing its market capitalization to approximately $7.8 billion. At market close, its total market capitalization was $6.5 billion. This is an open letter from Figure founder Mike Cagney regarding the IPO: At the end of 2017, I had my blockchain "aha" moment. When I was CEO of SoFi, I'd always made rhetoric about Bitcoin and blockchain more broadly—"It's going to change financial services!"—but I had no idea how. This time, it was different. Ask any full-stack engineer, and most will say they'd rather not develop on the blockchain: it's slow, cumbersome, and, because of its immutable nature, has extremely low fault tolerance. But the blockchain has a superpower: it replaces trust with truth. Financial services have always been, and still are, markets based on trust. These markets require numerous intermediaries: a public stock purchase and sale can involve up to seven intermediaries; a debit card transaction can involve five. Many mega-cap companies are built around this rent-seeking dynamic. Blockchain has the potential to condense these multi-party markets into just two: the buyer and the seller. All room for rent-seeking will disappear. Blockchain can do more than disrupt existing markets. By putting historically illiquid assets (such as loans) and their historical performance on-chain, blockchain can bring unprecedented liquidity to these markets. This liquidity, combined with the ability to achieve true digital integrity and control over these assets, will open up previously inaccessible financing opportunities. The disruptive opportunities presented by blockchain are significant, but the untapped opportunities it creates are even greater. This was my "aha" moment. You can create natively digital assets where everyone knows true ownership, composition, and history, without relying on trust. Assets can be traded in real time and bilaterally, without counterparty or settlement risk. Lenders gain instant, true, and complete digital control over their collateral. Blockchain completely reshapes how assets are originated, traded, and financed. This isn't a "lipstick-on-a-pig" fintech remake of an old system, but a completely new capital markets ecosystem. I want to be at the forefront of this transformation. Figure: Reshaping the Capital Market with Blockchain In early 2018, I co-founded Figure with my wife, June Ou, and a few like-minded individuals. Figure's goal was simple: to transform the capital markets with blockchain. To do this, we had to bring a real, measurable use case to the market. 2018 was the year of the ICO (Initial Coin Offering), and crypto companies seemed to be able to raise an endless stream of capital by selling tokens. We chose a different path. We believed we could originate, aggregate, and securitize loans on the blockchain, saving up to 85 basis points (bps) in transaction costs. We presented this idea to banks, and they all said, "Great! We love it! We'd love to be the 10th bank to do this..." Clearly, this wasn't a "build it and they will come" situation—just building the system wasn't going to get people to buy it. Having built a market-leading lending business at SoFi, we weren't excited about creating another lender, but we recognized the need to prove to the market that blockchain would be superior. In 2018, we became one of the first teams to originate consumer loans on-chain. Figure began as a direct-to-consumer loan originator, albeit on a blockchain. We chose the home equity revolving line of credit (HELOC) as our first product because we felt no one had efficiently originated it (a greenfield initiative). We didn't want to immediately compete head-on with the giant consumer lenders or mortgage originators; we needed time to convince both buyers and sellers to adopt this new technology. We quickly expanded our model to B2B2C. Today, over 168 third parties use our technology to originate loans on-chain, including half of the top 20 retail mortgage lenders. Recently, we've also opened up blockchain-native capital markets for these originators: using our technology, they can sell assets directly (and soon, raise capital) bilaterally to the blockchain capital markets, without Figure acting as an intermediary. In 2020, we completed the industry's first blockchain-native consumer loan securitization; in 2023, we completed the industry's first AAA-rated securitization. Since our launch, we have originated over $15 billion in loans and completed over $50 billion in on-chain transactions. We are the largest player in the RWA space on a public blockchain, a position unmatched to date. In 2018, most mainstream blockchains were based on Proof-of-Work (PoW). PoW presented real challenges in implementing financial services: cost, speed, and, most importantly, predictability. PoS (Proof-of-Stake) was emerging at the time, offering a better response to these challenges. Following a misjudgment experiment with a quasi-permissioned blockchain, June and her team built and launched Provenance Blockchain. Provenance is a public, PoS-based, decentralized blockchain. Figure does not control Provenance, though we hold 20% of its utility token, $HASH, and continue to support the protocol's research and development. Built for financial services, Provenance is crucial to our efforts to drive institutional adoption. Blockchain and the Capital Market We believe blockchain brings three core values to the capital market. The first is at the transaction level—reducing costs for auditing, quality control, and third-party review; we've already benefited significantly from this. The second is liquidity—supporting a 24/7, real-time, two-sided market. We and our partners are building such a greenfield loan trading market. Finally, financing, which we believe is the greatest value. Putting native digital assets (such as loans) on-chain allows lenders to improve their security rights (for example, through Figure's Digital Asset Registry Technology, DART) and gain control. Lenders can directly assess the liquidity, volatility, and prepayment rate of the collateral to determine risk, rather than simply granting credit to borrowers. When we directly connect the supply and use of funds, we can create Pareto-like markets: lenders and borrowers benefit because they no longer bear the inefficiencies of capital allocators and other intermediaries. We first applied this decentralized (DeFi) approach to margin financing on our crypto exchange and recently introduced Figure's loans to our Democratized Prime, our DeFi lending marketplace. Just as we do with trading and liquidity, we are demonstrating the power of DeFi in financing with our own assets. We've long believed that DeFi would eventually become a mainstream method of financing assets, and recent legislation is accelerating this process. Following the passage of the GENIUS Act, the US Treasury Department indicated that trillions of dollars could flow into US Treasury securities via stablecoins. This would primarily come from bank deposits. A $1 trillion outflow of bank deposits in 2022–2023 nearly crippled the financial system. If the Treasury Department's assessment of the scale and path is correct, something new will have to fill the void. We believe that's DeFi, and we're leading the way in the RWA space. The “endgame” of blockchain We believe that blockchain's value proposition can be extended to all asset classes. Taking public equities as an example, beyond trading efficiency and liquidity, blockchain's most significant improvements in financing are likely to be found today. Imagine a scenario where you could seamlessly cross-collateralize your stocks with other non-equity assets to gain leverage, or where investors could directly control and earn the economic benefits of lending their stocks. Blockchain is the leveler in the financial arena. We pioneered on-chain lending, and next we hope to lead the way in bringing new asset classes, such as stocks, onto the blockchain. Just as Web 2.0 has seven major stocks today, I believe Web 3.0 will also have a peer group of companies representing blockchain technology. Our IPO brings us closer to becoming a leader in this group. While we have built a profitable and fast-growing blockchain-based company within an extremely stringent regulatory environment, we remain optimistic that regulatory changes and public market acceptance of blockchain will drive the industry and its opportunities in the coming years. This IPO is just one step in a long process of bringing blockchain into all aspects of the capital markets.

Author: PANews

2025/09/15

August 2025 Web3 Chain Data Analysis: Ethereum Institutional Betting Reaches New Highs, New Public Chain Accelerates Funding

August 2025 Web3 Chain Data Analysis: Ethereum Institutional Betting Reaches New Highs, New Public Chain Accelerates Funding

summary The on-chain ecosystem is rapidly differentiating, with Solana maintaining its high-frequency dominance and Ethereum consolidating its high-value position. The capital flow structure is evolving towards "the strong get stronger", with emerging public chains performing well, while some side chains and L2 are facing pressure from capital withdrawal. Ethereum continues to maintain its position at the core of the public chain with a net inflow of over US$2 billion and record highs in both price and institutional allocation. Emerging public chains are attracting capital and rising, while side chains such as Polygon are experiencing large-scale capital outflows, showing a pattern of "the strong getting stronger." After Bitcoin reached a high of $124,000, the capital inflow slowed down, but the selling pressure was mild, the cost basis support was solid, and the unrealized losses remained low. Overall, it showed that the current pullback was a stage correction rather than a trend reversal. Aave continues to dominate the decentralized lending space, and by launching the Horizon platform to enter the institutional-grade RWA mortgage lending market, it further strengthens its core position in the integration of DeFi and traditional finance. BIO has rapidly risen in the DeSci field thanks to its V2 upgrade and ecological expansion. The token market value and pledge volume have soared simultaneously, and on-chain funds have accelerated inflows, demonstrating its potential to continue to lead decentralized scientific research. On-chain data summary Overview of on-chain activities and capital flows In addition to analyzing overall on-chain capital flows, we further selected several key on-chain activity metrics to assess the true usage and activity of various blockchain ecosystems. These metrics include daily transaction volume, daily gas fees, daily active addresses, and net cross-chain bridging traffic, encompassing multiple dimensions such as user behavior, network usage intensity, and asset liquidity. Compared to simply observing capital inflows and outflows, these on-chain native data can more comprehensively reflect the fundamental changes in the public chain ecosystem, helping to determine whether capital flows are driven by actual usage demand and user growth, thereby identifying networks with sustainable development foundations. Trading Volume Analysis: Ethereum Continues to Hit New Highs, Solana Remains at the Top According to Artemis data, as of August 31, 2025, Solana continued to rank first among mainstream public chains with a monthly transaction volume of over 29 billion transactions, and its average daily transaction volume remained stable between 90 million and 100 million transactions, demonstrating strong on-chain interaction stickiness and high-frequency application structure. Although there were slight fluctuations at the end of the month, the overall activity still far exceeded that of other public chains, reflecting the advantages of its ecological vitality and efficient architecture. [1] Ethereum's on-chain transaction volume reached a new high for two consecutive months, exceeding 51.77 million transactions, a nearly four-year high. This reflects the continued strong activity of the mainnet despite the diversion of Layer 2. Although the high value of individual transactions and gas costs remain limiting factors, the overall transaction structure is robust, and the linkage effect between the mainnet and Layer 2 continues to strengthen. In addition, according to DefiLlama data, the monthly trading volume of DEX on the Ethereum chain reached US$140.1 billion in August 2025, setting a new record; the current TVL is US$92.58 billion, still about 17% lower than the 2021 peak. The simultaneous increase in trading volume and user activity indicates a significant improvement in capital utilization. User behavior is shifting from static lock-up to more frequent trading and liquidity utilization, showing a trend structure of "trading activity outperforming TVL recovery." [2] Overall, Solana maintains its strong performance, characterized by high-frequency interactions and a highly sticky structure, and continues to dominate the on-chain trading landscape. Base has steadily established itself as a dominant player in Layer 2 transactions. Ethereum, with its mainnet continuing to reach new heights and its Layer 2 development progressing in tandem, demonstrates the resilience and value-carrying capacity of a classic public chain. The on-chain trading ecosystem is accelerating its structural differentiation into "high-frequency, affordable chains" and "low-frequency, high-net-worth chains." Active Address Analysis: Solana Leads, Ethereum Reaches New High According to Artemis data, as of August 31, 2025, the average daily active addresses on the Ethereum mainnet were approximately 543,000, with a steady upward trend. The total number of monthly active addresses exceeded 16 million, setting a new historical high, indicating that its user base is steadily expanding. [3] Solana still maintains an absolute lead in terms of active addresses, with an average of 3.587 million daily addresses, demonstrating extremely strong user stickiness and high-frequency usage scenarios; Base ranks second with 1.206 million, reflecting its significant results in native ecosystem construction and application traffic diversion. Overall, Solana maintains a commanding lead in active addresses, while Base's rapid rise demonstrates its latecomer advantage. Ethereum, with its composite "mainnet + L2" structure, forms a more complete ecosystem. The on-chain user structure has clearly differentiated into a "high-frequency user chain" and a "value-carrying chain," further clarifying its ecosystem positioning. On-chain fee income analysis: Ethereum continues to dominate high-value scenarios, while Solana performs strongly According to Artemis data, as of August 31, 2025, Ethereum's on-chain transaction fee revenue totaled approximately US$65 million. Although it has declined slightly from the previous month, it is still far ahead of other public chains. There was a single-day peak of nearly US$5 million in the middle of the month, indicating that the main network transaction enthusiasm remains high due to the active DEX and the deployment of new projects. Although the Layer 2 network bears a large amount of daily transaction traffic, the high-value interaction demand of the Ethereum main network still constitutes the main support for its transaction fee income. [4] Solana demonstrated remarkable stability, with stable monthly fee trends and daily revenue consistently maintaining between $1 million and $1.5 million. Its overall performance was second only to Ethereum, placing it firmly in second place. Solana's high-frequency, micro-transaction mechanism ensures extremely low unit fees, yet its massive transaction volume still supports substantial revenue, highlighting the maturing commercialization foundation of Solana in high-frequency scenarios. Overall, Ethereum maintains a firm lead in on-chain fee revenue, while Solana maintains stable performance and high-frequency growth, while Base is steadily rising thanks to its native ecosystem. The increasingly pronounced divergence in fee revenue reflects the different positioning and development paths of each chain, focusing on value-based interactions versus frequency-based interactions. Analysis of public chain capital flows: Ethereum leads the pack, while Polygon sees the most significant capital outflow According to Artemis data, Ethereum recorded a net inflow of over $2 billion, continuing to rank first in public chain capital flows, demonstrating its overwhelming advantage in institutional allocation and ecological depth. [5] Driven by the Fed's "dovish" signal and institutional buying, the price of ETH broke through a record high of $4,956, with a market capitalization exceeding $580 billion, ETF management scale exceeding $30.5 billion, and a net inflow of nearly $2.8 billion in a single month. Institutional holdings also increased. BitMine acquired 690,000 ETH in one month, accounting for nearly 1% of the global supply, becoming the largest public holding company, further highlighting the dual value of ETH's "capital appreciation + cash flow". [6] At the same time, on-chain applications continue to expand. Robinhood and Ondo Finance are promoting the implementation of stock and stock token transactions. The monthly transfer amount of USDC has reached 748.3 billion US dollars. The TVL of the DeFi protocol Pendle has also exceeded 10 billion US dollars, indicating that Ethereum's core position in compliant finance and DeFi infrastructure continues to consolidate. [7] In addition to Ethereum, WorldChain and Solana also recorded net inflows of $98.8 million and $72.7 million, respectively, demonstrating the attractiveness of both emerging and established public chains. In contrast, several mainstream public chains experienced significant outflows. Polygon PoS saw a net outflow of over $1 billion in a single month, while Unichain and Arbitrum also saw net outflows of $490 million and $230 million, respectively. Base also saw an outflow of $190 million, reflecting a market rebalancing of valuations and interest in some L2 and sidechains. Overall, the pattern of capital flows tends to be "the strong get stronger", and Ethereum's leading position in capital acceptance, institutional deployment and ecosystem construction has been further amplified. Emerging public chains such as WorldChain and Solana continue to attract funds by leveraging the ecological superposition effect; while some early popular L2 and side chains are facing pressure from capital withdrawal, and market hotspot switching and liquidity games are becoming more frequent. Bitcoin key indicator analysis After Bitcoin reached an all-time high of $124,000 in August, its upward momentum has slowed significantly, with prices entering a period of high volatility and periodic corrections. As a core market anchor, its on-chain structural indicators are also releasing multiple signals, revealing a profound adjustment in capital flow and market structure. As capital inflows slow and demand momentum weakens, on-chain supply distribution and investor holdings are becoming key indicators for predicting future trends. To more systematically assess the support logic and risk evolution of the current high range, this article will focus on three core on-chain indicators: capital inflows and outflows and realized market capitalization (Realized Cap & Net Position Change), profit-taking pressure and market absorptive capacity (Volatility Adjusted Realized Profit/Loss), and cost basis and risk tolerance (Cost Basis Distribution & Relative Unrealized Loss). Through these cross-sectional observations, we can more clearly depict the market's high-level chip distribution, capital absorption capacity, and potential risks, providing a forward-looking on-chain perspective for analyzing subsequent market trends. BTC capital inflow slows down, and high-level demand momentum is insufficient According to Glassnode data, after Bitcoin broke through the historical high of $124,000, although the realized market value continued to rise, the capital inflow rate slowed down significantly. Compared with the situation when it broke through the historical high in March and December 2024, the net capital inflow expanded significantly, while the peak of green capital inflow in this round was far lower than the previous level. This shows that even though the price hit a new high, there was no significant influx of new funds into the market, and investors' willingness to enter the market at high levels has obviously weakened. Overall, it reflects the lack of momentum on the demand side and relatively weak support from the capital side. [8] At the same time, the Volatility Adjusted Net Realized Profit/Loss (7d) shows that every time Bitcoin breaks through its all-time high (ATH), it is often accompanied by a significant wave of profit-taking. However, during the breakthrough of the new high of $124,000 in August 2025, the scale of profit-taking in the market was relatively mild, with only limited capital outflows, and did not reach the extreme levels of the previous two ATHs. [9] This suggests that investors are currently more inclined to hold rather than rush to cash out, resulting in less selling pressure and a more robust market structure. Overall, while insufficient short-term capital inflows are limiting further upside, low profit-taking pressure is helping to maintain market consolidation at high levels, rather than a rapid, deep correction. BTC's cost base is accumulating, and key support areas are gradually consolidating. According to Glassnode data, the heat map of BTC's cost basis distribution shows that a clear supply-intensive zone has formed in the $93,000–110,000 range, which has continued to accumulate since December 2024 and has gradually become an important support area for the current market. Although the price has recently fallen from the high of $124,000, it is still running above this supply zone, showing strong carrying capacity. [10] Meanwhile, the range above $110,000 is relatively sparsely supplied, forming a so-called "white space." This area lacks stable support or resistance, leading to higher volatility. Currently hovering around $111,000, a further correction could be supported by the solid underlying cost base. A sustained hold would indicate a sustained accumulation of funds within this range, laying the foundation for a subsequent rebound. Overall, this heat map highlights the supply concentration and potential bottoming effect of BTC in the $93,000–110,000 range, while also revealing the market's current position on the brink of critical support. BTC's unrealized losses remain low, and the market pressure is limited According to Glassnode data, BTC's relative unrealized loss indicator (Relative Unrealized Loss) soared during the 2023 bear market, reflecting the great pressure of losses on investors at the time. However, since the end of 2023, the indicator has fallen back rapidly and remained at a low level from 2024 to 2025, staying below -0.5 standard deviations for a long time. [11] Compared to historical cycles, the current relative unrealized loss level is only approximately 0.5%, significantly lower than the extreme values of over 30% seen during the 2018–2020 and 2022–2023 bear markets. This suggests that despite the recent pullback from BTC's $124,000 high, which has increased unrealized losses for short-term holders, the overall market's loss pressure is not severe. Overall, this indicator suggests that the market has not entered the extreme panic phase of past deep bear markets, and the investor structure remains relatively healthy. In other words, the current pullback is more like a phased correction in the upward trend than a trend reversal. Hot Projects and Token Trends On-chain data indicates that capital and users are gradually converging towards ecosystems with a strong foundation for interaction and deep application. Projects with buzzworthy and technologically innovative capabilities are becoming a new focus of capital. This article will focus on recent high-performing projects and tokens, analyzing the underlying logic and potential impact. Overview of popular project data Aave Aave is a decentralized lending platform that leverages smart contract technology to eliminate traditional financial intermediaries and allow users to trade directly. Known for its innovative lending products, the platform supports multiple cryptocurrencies and employs second-layer solutions to enhance performance. Aave's operating mechanisms include collateralized lending and flash loans, along with a security module to protect the protocol from capital loss. Aave V4 will introduce new features such as a unified liquidity layer and fuzzy interest rate control. Furthermore, Aave Network's proposal will enable it to perform multiple functions as an application chain, including using GHO for fees and integrating Aave V4. According to DefiLlama data, the total locked value (TVL) of the decentralized lending protocol Aave has exceeded US$41.1 billion, setting a new record high. [12] If the US$28.9 billion in outstanding loans on that day are included, Aave's total capital scale will exceed US$70 billion, ranking among the top 37 banks in the United States (ranked in the top 1.7%). [13] Aave founder Stani Kulechov said that Aave is an open financial network that can provide institutions with a source of income that does not rely on the Federal Reserve, highlighting the structural potential of DeFi to replace the traditional financial system. Currently, Aave continues to lead the DeFi lending field, holding approximately 50% of the market TVL, which is nearly 6 times the size of its second largest competitor Morpho, reflecting the high concentration of user and institutional funds on its security and stability. Aave Labs recently launched a new platform, Horizon, which aims to provide institutional investors with a lending service that uses tokenized real-world assets (RWA) as collateral to obtain stablecoins. Initially, qualified institutions can use tokenized assets such as government bonds and cryptocurrency holding funds as collateral to borrow stablecoins such as USDC, RLUSD, and GHO. The first batch of supported assets include Superstate Short-Term U.S. Treasury Fund, Circle Income Fund, and Centrifuge's Janus Henderson tokenized product. [14] The launch of Horizon marks Aave's accelerated expansion into the institutional RWA financing market. By introducing traditional financial assets like government bonds as DeFi collateral, Aave broadens the issuance and use cases for stablecoins while providing institutions with tools for both liquidity and yield management. This not only increases market demand and liquidity for stablecoins and RWAs, but also promotes the convergence of DeFi and TradFi. In summary, Aave not only maintains its leading position in decentralized lending, but its continued innovation in institutional services also demonstrates a clear strategic vision. With increasingly clear compliance paths and a growing range of collateral assets, Horizon is poised to become a key entry point for institutions into DeFi, further strengthening Aave's core position in the global financial architecture. Overview of popular token data $BIO BIO is the native token of Bio Protocol, a blockchain project focused on decentralized science (DeSci). Combining on-chain governance with token incentives, Bio Protocol aims to create an open research collaboration network involving researchers, patients, and investors. BIO tokens can be used to participate in BioDAO governance, support project incubation, and distribute intellectual property revenue. Staking also grants voting rights and rewards eligibility. Through IP tokenization, research task incentives, and an incubator mechanism, Bio Protocol promotes the on-chain transfer and transformation of scientific research results, making it one of the most representative projects in the DeSci ecosystem. With the official launch of Bio Protocol V2, which introduced new mechanisms such as Launchpad, a staking points system, and a liquidity engine, the total amount of staked BIO exceeded 100 million within the first week of launch, and the token market value quickly doubled to $200 million, reigniting market attention to the DeSci track. [15] The price of BIO started at $0.10 on August 18 and rose to a high of $0.315 on August 24, a single-week increase of nearly 200%, becoming one of the most outstanding on-chain assets in August. Regarding ecosystem expansion, Bio Protocol has generated over $4 million in revenue from liquidity fees and is preparing to integrate with leading DeFi protocols, including launching a dedicated lending market for Bio. The team also plans to launch Bio Copilot, a decentralized research agency. This will automate research processes such as drug screening, clinical operations, and funding allocation, accelerating the development of high-frequency, intelligent, and iterative research. On-chain data also shows that funds are flowing in at an accelerated pace. According to Dune data, Bio Protocol's TVL has exceeded US$22 million, up more than 110% in the past seven days. Analysts believe that the increase in the medium- and long-term lock-up ratio is expected to bring continued upward momentum to BIO, but the high proportion of short-term positions may still trigger periodic selling pressure; if long-term funds continue to flow in, BIO is expected to usher in a new round of rising cycle. [16] In summary, Bio Protocol, with its precise positioning and continuous innovation in the decentralized scientific research (DeSci) space, has not only achieved remarkable breakthroughs in on-chain data and market performance, but has also successfully attracted deep participation from both capital and the community through its V2 upgrade, liquidity optimization, and ecosystem development. With the continued advancement of products like Bio Copilot, the project is expected to make substantial progress in promoting the on-chain integration of the scientific research industry chain and enabling research automation. With continued capital inflows and further optimization of its lock-up structure, Bio Protocol is poised to maintain its leadership in the DeSci space, becoming a key bridge connecting scientific innovation with on-chain finance. Summarize In August 2025, on-chain activity and capital flow structures continued to diverge. Solana maintained its top spot with over 29 billion monthly transactions, demonstrating its dominance in high-frequency interactions. Ethereum, while achieving consecutive monthly highs in mainnet transaction volume, maintained its leading position in fee income and net capital inflow, solidifying its core position in high-value interaction scenarios and institutional deployments. Base has steadily increased, with active addresses exceeding one million, continuing to expand its influence within the Layer 2 community. Regarding capital, Ethereum saw over $2 billion in net inflows in a single month, driving both ETH prices and ETF assets under management to new highs. WorldChain and Solana also led the way in attracting capital. Meanwhile, sidechains such as Polygon and Unichain, as well as some Layer 2 projects, faced capital withdrawals, further evolving the on-chain landscape towards a "stronger, stronger" landscape. For Bitcoin, on-chain indicators demonstrate a robust structure amidst high-level fluctuations. Capital inflows have slowed, but profit-taking pressure remains relatively mild, limiting selling pressure. The cost basis has established solid support in the $93,000–$110,000 range, and short-term pullbacks have not breached key support levels. Unrealized losses remain low, limiting overall pressure. Overall, this correction is more of a phased correction than a trend reversal, and the structural foundation for continued gains remains in place after the high-level fluctuations are resolved. Aave and Bio Protocol are currently in the spotlight. Aave, a leading DeFi lending platform, boasts a TVL exceeding $41.1 billion and a total capital base exceeding $70 billion. Through Aave V4 and the Horizon platform, it is accelerating its deployment of RWA collateral and institutional services, strengthening its position in the convergence of DeFi and TradFi. Bio Protocol, with its V2 upgrade doubling its market capitalization to $200 million and a nearly 200% weekly price surge, also plans to launch Bio Copilot to promote scientific research automation, demonstrating strong growth potential in the DeSci field. References: 1. Artemis, https://app.artemisanalytics.com/chains 2. DefiLlama, https://devillama.com/chain/ethereum?activeAddresses=false&tvl=false&groupBy=monthly&dexsVolume=true 3. Artemis, https://app.artemisanalytics.com/chains 4. Artemis, https://app.artemisanalytics.com/chains 5. Artemis, https://app.artemisanalytics.com/flows 6. CoinGecko, https://www.coingecko.com/en/treasuries/ethereum 7. DefiLlama, https://defillama.com/protocol/pendle 8. Glassnode, https://studio.glassnode.com/charts/ba1ec93d-85f4-41fe-5606-798a2f30013a?a=BTC 9. Glassnode, https://studio.glassnode.com/charts/22ef95fa-bed1-4a18-5e56-a74093870d1a?a=BTC 10. Glassnode, https://studio.glassnode.com/charts/indicators.CostBasisDistributionHeatmap?a=BTC&mScl=log&pScl=log&period=1y&resolution=24h&s=1727519376&u=1756166400&zoom= 11. Glassnode, https://studio.glassnode.com/charts/e710c5a0-3f26-4e8b-7fa2-28ef87c92b73 12. DefiLlama, https://devillama.com/protocol/aave?events=false&borrowed_tvl=true 13. Aaverank, https://aaverank.com/ 14. X, https://x.com/defisebs/status/1960790694509076811 15. CoinGecko, https://www.coingecko.com/en/coins/bio-protocol 16. Dune, https://dune.com/tk-research/bio-launchpad

Author: PANews

2025/09/15

Ethereum-based Stablecoins: Unprecedented $168 Billion Surge Reshapes Crypto Landscape

Ethereum-based Stablecoins: Unprecedented $168 Billion Surge Reshapes Crypto Landscape

BitcoinWorld Ethereum-based Stablecoins: Unprecedented $168 Billion Surge Reshapes Crypto Landscape The cryptocurrency world is buzzing with an exciting development: the total supply of Ethereum-based stablecoins has soared past an astonishing $168 billion, marking an unprecedented all-time high. This significant milestone, highlighted by data from Token Terminal, is not just a number; it is a powerful indicator of the growing maturity, utility, and confidence within the digital asset ecosystem. It signals a pivotal moment for stablecoins and their foundational role in the broader crypto economy. What Drives This Remarkable Growth in Ethereum-based Stablecoins? To truly appreciate this surge, it helps to understand what Ethereum-based stablecoins are. Essentially, these are digital currencies built on the Ethereum blockchain that maintain a stable value, usually pegged to a fiat currency like the US dollar. Unlike volatile cryptocurrencies such as Bitcoin or Ether, stablecoins offer a reliable store of value and a medium of exchange. Several factors contribute to their remarkable ascent: Market Stability: In an often-volatile crypto market, stablecoins provide a crucial haven. Traders use them to lock in profits or avoid downturns without converting back to traditional fiat currency. DeFi Dominance: Ethereum hosts the largest and most vibrant Decentralized Finance (DeFi) ecosystem. Ethereum-based stablecoins are the lifeblood of DeFi, serving as collateral for lending, borrowing, and liquidity provision on decentralized exchanges. Global Utility: They facilitate fast, low-cost international remittances and payments, bypassing traditional banking hurdles. This utility is particularly attractive for users seeking efficient cross-border transactions. The $168 billion figure underscores their widespread adoption and essential function across various crypto applications. It confirms their status as a cornerstone of the digital financial world. The Impact of Surging Ethereum-based Stablecoins on DeFi and Beyond The immense growth of Ethereum-based stablecoins carries profound implications for both the DeFi sector and the wider financial landscape. Their increased supply provides deeper liquidity, which is vital for the smooth functioning of decentralized applications. Consider the benefits: Enhanced Liquidity: A larger supply means more capital is available for trading, lending, and other financial activities within DeFi protocols. This leads to better price execution and reduced slippage for users. Increased Accessibility: Stablecoins lower the barrier to entry for individuals worldwide to participate in financial services, regardless of their geographical location or access to traditional banking. Innovation Catalyst: The reliability of stablecoins fosters innovation, enabling developers to build more complex and robust financial products and services on Ethereum. However, this growth also brings challenges. Regulatory bodies globally are increasing their scrutiny of stablecoins, focusing on issues like transparency, reserves, and consumer protection. Centralization concerns also persist for some stablecoin issuers, prompting ongoing discussions about decentralization and auditability. Future Outlook: What’s Next for Ethereum-based Stablecoins? As Ethereum-based stablecoins continue their upward trajectory, what can we expect for their future? The ongoing development of Ethereum 2.0 (now the Merge and subsequent upgrades) promises enhanced scalability and lower transaction costs, which will undoubtedly make stablecoin usage even more efficient and appealing. Moreover, the integration of stablecoins into mainstream finance is likely to accelerate. We are already seeing major financial institutions exploring their use for various applications, from wholesale payments to tokenized assets. The journey toward regulatory clarity will be crucial in shaping this integration. For users and investors, understanding the different types of Ethereum-based stablecoins—such as collateralized fiat-backed (USDT, USDC) and algorithmic (DAI)—is key. Each type presents unique risk profiles and opportunities. This knowledge empowers you to make informed decisions and leverage these digital assets effectively. Conclusion The record-breaking $168 billion supply of Ethereum-based stablecoins is a clear testament to their enduring value and indispensable role in the evolving digital economy. This milestone signifies not just financial growth, but also increasing trust and utility in decentralized finance. As the crypto landscape continues to mature, stablecoins on Ethereum will undoubtedly remain at the forefront, driving innovation and providing essential stability for millions worldwide. Frequently Asked Questions (FAQs) Q1: What exactly are Ethereum-based stablecoins? A1: Ethereum-based stablecoins are cryptocurrencies built on the Ethereum blockchain that are designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. They achieve this stability through various mechanisms, such as holding reserves or algorithmic controls. Q2: Why is the $168 billion all-time high for Ethereum-based stablecoins significant? A2: This milestone indicates massive growth and widespread adoption. It highlights increasing confidence in stablecoins as a reliable store of value and medium of exchange, and their crucial role in powering the DeFi ecosystem and facilitating global transactions. Q3: What are the primary uses of stablecoins on Ethereum? A3: Stablecoins are primarily used for trading, lending, borrowing, and providing liquidity within DeFi protocols. They also serve as a safe haven during market volatility and enable efficient cross-border payments and remittances. Q4: Are there any risks associated with using Ethereum-based stablecoins? A4: Yes, risks can include regulatory uncertainty, the potential for de-pegging (losing their stable value), and centralization concerns depending on the stablecoin issuer’s reserve management and transparency. It is important to research individual stablecoins. Q5: How do stablecoins contribute to the DeFi ecosystem? A5: Stablecoins are fundamental to DeFi, providing the necessary liquidity for decentralized exchanges, lending platforms, and other financial applications. They enable users to earn yield, borrow funds, and participate in a wide array of financial activities without price volatility. Q6: What does the future hold for Ethereum-based stablecoins? A6: The future looks promising, with continued growth expected due to Ethereum’s ongoing upgrades improving scalability and efficiency. Increased institutional adoption and evolving regulatory frameworks will also play a significant role in shaping their trajectory and integration into mainstream finance. If you found this article insightful, please consider sharing it with your network! Your support helps us bring more valuable insights into the dynamic world of cryptocurrency. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum price action. This post Ethereum-based Stablecoins: Unprecedented $168 Billion Surge Reshapes Crypto Landscape first appeared on BitcoinWorld.

Author: Coinstats

2025/09/15

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