Is $USDT the stablecoin that achieves global adoption?
Despite its dominance and market share within the sector, multiple scaling solutions like @PlasmaFDN and @stable have recently emerged, with the goal of taking $USDT one step further.
What exactly does this mean? 🧵
2/ Introduction
Having processed over $27 trillion in transfer volume and surpassing both Visa and Mastercard last year, stablecoins have cemented themselves as a key payment rail.
What once started as a way to price cryptocurrency on-chain, has evolved to power inflation hedging, global payroll, remittances, consumer fintech UX, and more today.
3/
On top of that, the US Treasury Secretary's optimistic expectation of a $2T stablecoin market by 2028, the recent successful @Circle IPO and passing of the Genius Act have further put stablecoins in the spotlight.
But are existing stablecoin rails truly enough to scale?
4/ Efficiency Problems
Stablecoins today face many challenges - they are trapped in liquidity silos, fragmented across chains, lack transparency, complexity, and are limited by clunky fiat ramps.
This is on top of both issuers and adopters like institutions being subject to potential regulatory changes given the early stage of regulatory guidelines and frameworks.
5/ Market Status
@Tether_to currently dominates the stablecoin sector with a 62% market share, while also holding the position as the top revenue-generating project in crypto.
Together with Circle, they account for 83% of all stablecoin transactions, of which over 80% occurs on @trondao and @ethereum. This raises additional concerns surrounding chain dependency, lack of optimisation for stablecoin activity, volatile and unpredictable fees, and more.
This, however, has already opened the door for new projects that are offering efficient solutions.
6/ Stable
One emerging solution is @stable, a purpose-built Layer 1 for stablecoins, combining EVM compatibility with zero gas fees on $USDT transfers. It will also be the first standalone L1 to enable native $USDT gas payments.
Through its range of features, Stable aims to unlocks scalable, low-cost use cases across payments, remittances, stablecoin rails, and enterprise-grade DeFi.
These key features include:
9/ Conclusion
Stablecoins as a whole aren’t just growing, they are forming and becoming the foundation for a new financial system. But it remains a fact that better infrastructure is still required for it to truly scale.
Projects like @PlasmaFDN and @Stable aren’t replacing $USDT but instead upgrading it for global adoption: to become faster, more affordable, and more compliant.
11/ NFA + DYOR
Credits
@DWFLabs
@ag_dwf
@CryptoTin_
@jh_0x
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