Analysis of Stablecoin Prospects: From the Margins to the Mainstream

The stablecoin sector is undergoing a silent revolution. Although the cryptocurrency circle has reacted lukewarmly to it, this transformation could have far-reaching effects on the entire industry.

The Current Status of Stablecoin Development

Recently, some large technology and retail companies have begun exploring the issuance of their own stablecoins, a move that has attracted market attention. However, surprisingly, the response within the cryptocurrency industry has been lukewarm, and there has even been a flow of funds into related stocks in the US stock market. This contrast is worth our in-depth consideration.

Limitations of Native Narratives in Cryptocurrency

Why is the cryptocurrency industry lacking enthusiasm for the development of stablecoins? The answer to this question may lie in the core of the stablecoin business - the issuance channels. Currently, effective stablecoin issuance channels mainly include cryptocurrency exchanges, large tech companies, and traditional banks. These channels are not directly related to the development direction of most cryptocurrency projects.

Successful stablecoin cases, such as Tether, owe their success more to grasping market demand and issuance channels than to technological advantages. Even more advanced projects, like Circle, need to cooperate with large exchanges to gain issuance channels. For ordinary investors, stablecoins may lack the appeal of rapid appreciation, which also explains the lukewarm response within the cryptocurrency community to the stablecoin craze.

Tech Giants: The New Power of Stablecoins

Traditional banks may be at a disadvantage in this competition. In contrast, the around-the-clock, borderless dollar system poses a huge challenge to the traditional banking system.

The truly disruptive potential lies with those tech giants that have a large user base and mature payment scenarios. When these companies begin to venture into the stablecoin space, they are essentially introducing billions of mainstream users to the cryptocurrency infrastructure.

This is the real value of the development of stablecoins - it does not bring short-term profit opportunities to the cryptocurrency circle, but allows the cryptocurrency infrastructure to gradually penetrate into the mainstream world. As more users begin to use stablecoins in their daily lives, the demand for infrastructure in various related fields will consequently increase, presenting a long-term, potential growth opportunity.

The Deep Impact of the IPO Wave

The wave of listings for companies related to stablecoins may be on the horizon. However, most newcomers may lack true distribution capabilities, and investors need to be cautious about the high valuations of these projects.

From another perspective, this wave of listings is actually showcasing the value of cryptocurrencies to the traditional financial sector. When Wall Street begins to seriously study the business models of stablecoins, this subtle influence may be more profound than the superficial excitement.

Conclusion

The development of stablecoins marks a turning point for cryptocurrencies from fringe innovation to mainstream business choice. Although the current cryptocurrency circle may not feel direct heat, in the long term, as the cryptocurrency infrastructure supports more practical demands, the entire industry will benefit from this infrastructure upgrade. This transformation may be slow yet profound, warranting our continuous attention and reflection.