Stablecoins Take Center Stage in the Latest Market Cycle

The recent near-passage of the GENIUS Act, coupled with numerous companies launching stablecoin initiatives, has led to a notable upswing in stablecoin-related assets. Circle, the issuer of USDC, has seen its stock price skyrocket by approximately 500% since its debut on June 5, with the company's valuation reaching a staggering $77 billion, surpassing the total market capitalization of USDC itself, which stands at around $62 billion. This week has been marked by bullish signals for stablecoins across the globe. CRCL has become the most popular foreign stock in South Korea, while Tether, the leading stablecoin issuer, has amassed significant spare cash, enabling it to acquire a determinative stake in the Italian soccer team, Juventus. Furthermore, Coinbase, which generates more revenue from USDC than Circle, has witnessed its stock price soar to its highest level in four years. Even Euro-backed stablecoins, which have long been overshadowed by their USD counterparts, are experiencing a surge, with a combined increase of 44% year-to-date, led by Circle's EURC. Stablecoins have emerged as the 'quiet winners' in prediction markets like Polymarket. In response to the stablecoin frenzy, traditional payment giants such as Mastercard and Visa have been making a flurry of announcements. Mastercard, for instance, announced new partnerships with Moonpay, Chainlink, and Kraken this week. Amidst the plethora of stablecoin news, other significant topics have also emerged. SEI has experienced a surge, albeit driven by stablecoin news. The Federal Reserve has officially stated that crypto no longer poses 'reputational risks' for banks, allowing them to provide a wide range of financial services to crypto companies. Additionally, World Liberty Financial, a venture linked to the Trump family, has reversed its promise to make its token non-transferable. Unlike previous summer months, where market activity tends to slow down, this year has been an exception, with the crypto market continuing to evolve at a rapid pace.