Stablecoins collectively have broken past the market cap they had back just before terra usd (USD), the algorithmic stablecoin, fell apart.
Why it matters: Stablecoins are a lot of things, but the main thing they are is the liquidity lifeblood of the crypto industry, so more stablecoins mean more trading.
What we're watching: The new crypto native stablecoin of interest: USDe, from Ethena Labs.
As a synthetic dollar, it maintains its value by a delta-hedging strategy. Basically, USDe functions as a carry trade between ether's (ETH) longs and shorts.