Stablecoins Explode: US GENIUS Act Fuels $1.5 Trillion July Transaction Frenzy

The crypto world just got a turbocharge—Washington's GENIUS Act sent stablecoins into hyperdrive, clocking a jaw-dropping $1.5 trillion in July alone. Forget 'slow adoption'—this is a full-blown financial stampede.

Regulatory Green Light = Rocket Fuel

With Uncle Sam finally playing nice, institutional money flooded stablecoin markets like a broken dam. Suddenly, every hedge fund and their dog wants a piece of the dollar-pegged action—who knew compliance could be this profitable?

The Ironic Twist

Funny how the same banks that mocked crypto for years are now scrambling to build stablecoin rails. Guess those 'useless internet tokens' look mighty useful when they're vacuuming up 1.5 trillion reasons to care.

Buckle up—this is what happens when DeFi and TradFi stop pretending to hate each other. Just don't expect Wall Street to admit they were wrong.

Meanwhile, a closer look at the July numbers revealed that Circle’s USDC dominated the stablecoin market, accounting for nearly 50% of the total volume. USDC transactions reached approximately $748 billion in July.

Meanwhile, Tether’s USDT, the largest stablecoin by circulating supply, followed with a volume of $420 billion. The decentralized DAI stablecoin secured the third spot with $261 billion in transactions.

Why stablecoin volume rose in July

The remarkable increase in stablecoins’ on-chain volume can be attributed to several factors, including Bitcoin and Ethereum’s record performances in July.

Last month, Bitcoin price rose to a new all-time high of over $123,000 while ETH’s price also approached the $4000 threshold.

The price performance of these assets sparked significant on-chain activity from investors, who invested their profits in non-volatile digital assets like USDT and USDC.

In addition, the stablecoin industry saw the approval of its first major bill in the US, which helped clear the regulatory uncertainty in the sector.

The GENIUS Act, signed into law on July 19, established clear guidelines for stablecoins and digital asset-backed financial products. The new regulations include reserve requirements and oversight by the Federal Reserve, which are likely to foster greater trust and stability in the sector.

As a result, prominent financial institutions like JPMorgan and other top global companies like Meta have been exploring the use of stablecoins for cross-border transactions and other financial services, which further legitimizes the market.

With this clearer regulatory backdrop and surging adoption, stablecoin market capitalization has climbed past $278 billion, according to CryptoSlate’s data.