Jan 14, 2025 - Economy
Charted: Stablecoins' new high
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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.
Flashback: A year ago they started ticking up again, once more.
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.
- USDe holders can also earn yield by staking them.
