The combined market capitalization of stablecoins has reached $204 billion, marking a 3% increase over the past seven days. Coinbase attributed this trend to a sharp rise in on-chain lending rates.
USDT ($138.45 billion) accounts for 67.8% of the total token supply. The share of USDC is 19.9% ($40.69 billion).
“[The increase in capitalization] indicates an influx of new capital. […] Investors are eager to capitalize on high lending rates, which are more than three times the yield of long-term bonds,” the report states.
Coinbase analysts also noted that USDC deposit figures have doubled over the past month.
“They have surged to 10-20% annually on Aave and Compound across almost all deployed networks, including Ethereum and Base,” the analysts stated.
Experts also highlighted the growth of TVL in lending protocols to a record $54 billion. The previous peak was $52 billion.
Additionally, experts cited investors’ search for speculative deals as a driver. They mentioned the hype surrounding the HyperLiquid project airdrop and the launch of new AI agent protocols.
Earlier, Andreessen Horowitz (a16z) predicted the gradual replacement of daily credit card transactions with stablecoins.