Stablecoins Emerge as the New Bitcoin, Market Capital Hits New High

Stablecoin Rises Like a New Bitcoin, Reaching a New Capital Peak The Total Market Capitalization of Stablecoin Reaches an All-Time High On Wednesday, the total value of stablecoin touched $256 billion, a 22% increase compared to the same period last year, demonstrating the solid position of this cryptocurrency in the blockchain ecosystem. This growth primarily stems from the U.S. Senator's approval of the GENIUS Act with a 68-30 vote, marking the first time a crypto bill received Senate approval. Although awaiting approval from the House of Representatives and President Trump, this is an important step in legalizing cryptocurrency in the digital economy. Key Role of Stablecoin in the Cryptocurrency Ecosystem In Q1 2025, stablecoin accounted for 28% of global crypto trading volume. USDT still dominates, representing over 50% of market capitalization at $155 billion. Following is USDC, with a capital of $61 billion. This is clear evidence of investor trust in blockchain-based stablecoins. Investors Plan to Issue More Stablecoins According to the bill's approval process, President Trump is directly involved in stablecoin projects. World Liberty Financial, backed by the Trump family, along with partner BitGo, has launched a USD-pegged stablecoin. While the GENIUS Act prohibits Congress and family members from profiting from stablecoins, President Trump still lacks this restriction. This has caused political disagreement and slowed the legislative process this spring. Many large companies, from anticipated banks to massive retail groups, are researching the possibility of issuing their own stablecoins. For example, at Morgan Stanley's conference, BofA Bank Director Brian Moynihan shared these plans. Banks like Bank of America are collaborating to build a cooperative stablecoin system. "We are collaborating with the industry and gradually building the project," Mr. Moynihan said. Last week, Wall Street Journal reported that giants like Amazon and Walmart are considering developing their own stablecoins, creating a hot topic in the cryptocurrency market. Continued Concerns About Large Tech Corporation Competition Meanwhile, senators like Elizabeth Warren are concerned that bills will enable large tech companies like Amazon and Meta to issue their own stablecoins. However, the law stipulates that any tech company wanting to issue stablecoins needs special committee approval from the Treasury Department. Crypto Market Temporarily Wavering Witnessing stablecoin growth, Circle's stock has increased over 400% since its first trading day in June. Experts predict that if the bill passes, the stablecoin market could exceed $2 trillion by the end of 2028, opening a golden opportunity for the cryptocurrency sector. However, the global crypto market is under pressure due to Middle Eastern tensions, causing investors to withdraw from risky assets. The total cryptocurrency market capitalization dropped nearly 2% to $3.26 trillion. The 24-hour trading volume also decreased by about 9% to $121 billion. BTC remains stable around $104,000, reflecting traders' cautious sentiment.