Circle’s Stock Skyrockets as Stablecoin Demand Hits Record Highs
Stablecoins are eating traditional finance—and Circle’s riding the wave. The company behind USDC just saw its shares surge as institutional adoption goes parabolic.
Why the frenzy? Traders are ditching fiat on-ramps for crypto’s 24/7 settlement. Meanwhile, regulators keep playing whack-a-mole with decentralized alternatives—making compliant options like USDC the path of least resistance.
Wall Street’s latest ‘aha’ moment? Maybe. Or just another case of suits chasing yield until the music stops.
Overview of the Stablecoin Market
As of June 16, Wu Blockchain conducted an analysis of the top 10 stablecoin projects. Their market values and collateral structures are noteworthy:
remains the leader with a market value of $155.51 billion, backed by a combination of US dollar cash reserves and short-term Treasury bills. Meanwhile,holds a market value of $61.58 billion and is similarly supported by cash and Treasury securities.
Other notable projects includewith a market valuation of $6.91 billion, collateralized by ETH and government bonds, andat $5.98 billion, employing ETH and derivatives along with delta-neutral hedge strategies on centralized exchanges.
Interesting projects such aslinked to former President Donald TRUMP ($2.19 billion),by First Digital ($1.51 billion), and PayPal-backed($0.96 billion) also capture attention. Additionally, gold-backed stablecoins like(Tether, $0.83 billion) and(Paxos, $0.82 billion), as well as TrustToken’sat $0.82 billion, are on the list.
Collateral Models and Risk Perception
The reliability of stablecoins is directly linked to their collateral structures. Traditional US dollar and Treasury-backed projects (USDT, USDC, PYUSD) currently dominate the market.
Conversely, hybrid models like USDE (ETH + derivative protection) or crypto-heavy projects like USDS offer potential returns but come with additional risks. Gold-backed XAUY and PAXG, on the other hand, emerge as hedges against inflation. Market data indicates that investors largely gravitate towards stablecoins backed by US dollars and government bonds.
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