In this issue of Coin Metrics’ State of the Network, we explore the shifting seas of the stablecoin sector in a changing regulatory and interest-rate environment. With the GENIUS Act standardizing reserve backing for payment stablecoins, competition is increasingly moving to those who own and capture the distribution. We map Circle’s revenue from USDC across blockchains to understand the dynamics prompting the push for proprietary stablecoins and the emergence of purpose-built networks.
Key Takeaways
- The stablecoin market cap stands at $280B, up 40% year-to-date. USDT (64%) and USDC (25%) continue to hold the largest market shares, while USDe expanded 133% post-GENIUS Act, becoming the third-largest stablecoin.
- The GENIUS Act standardized reserve backing with U.S. Treasuries, shifting competitive differentiation towards distribution, ecosystem reach and ability to scale market adoption.
- Circle’s revenues are driven by interest income on USDC reserves, mainly from Ethereum and Solana. However, the majority of USDC transaction activity accrues to Coinbase (through sequencing revenue on Base) and fees & MEV on Ethereum and Solana.
- These dynamics point to the emergence of application-specific stablecoins and stablecoin-focused chains, aiming to capture and internalize more value from the stack.
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