The post All you need to know about Ethereum stablecoins’ market cap hitting new high appeared on BitcoinEthereumNews.com.

Stablecoins on the Ethereum network just hit a new historic high, in line with global stablecoin count Assessing incoming regulatory headwinds and potential impact liquidity will be key The global stablecoin marketcap just hit a new all-time high, with Ethereum enjoying the lion’s share of that growth too. However, what does this mean for the network in terms of liquidity and growth? The total stablecoin marketcap stood at $205.79 billion, at the time of writing, with most of it in Ethereum. According to DeFiLlama, Ethereum’s stablecoin marketcap amounted to $117.39 billion at press time. In fact, this seemed to be equivalent to 54.32% of the total marketcap. Source: DeFiLlama These figures for Ethereum’s stablecoin marketcap marked a new ATH for the network. It surpassed its previous ATH achieved in February 2022, courtesy of the robust stablecoin inflows over the last 2 months. While the new Ethereum stablecoin marketcap performance has aided in boosting its stablecoin dominance, it also underscores its growing liquidity. This should technically mean more investor confidence and potentially signal budding network growth. However, Ethereum’s total value locked failed to follow through. Source: DeFiLlama Can Ethereum sustain the healthy growth? Although Ethereum’s stablecoin marketcap is on a positive trajectory right now, its TVL has been declining for a while. This has been largely due to ETH price fluctuations, but this trend could be exacerbated by a recent IRS development too. According to the U.S revenue authority IRS, tax on staking rewards will be based on unrealized profits. The potential implication is that this could discourage investors from staking their cryptocurrencies – An outcome that could potentially trigger TVL outflows. There is already a lawsuit challenging the IRS’s position on the matter. Prospects of TVL outflows were not the only concern arising from these regulatory hurdles. There has been…

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Filed under: News - @ December 29, 2024 2:06 am