As the Crypto Assets market languishes, an unexpected wave is sweeping in—a new trend referred to as the "stablecoin Supercycle" by Paradigm founder Matt Huang.

The pioneer in the stablecoin field, Circle, has recently made a remarkable performance in the U.S. stock market. Since its listing on June 5, Circle's stock price has surged from $31 to nearly $300, achieving an almost 10-fold increase in just half a month. This astonishing wealth effect has not only attracted the attention of those within the Crypto Assets circle but has also reignited passionate discussions in the market about the future development of stablecoins.

Looking back at the development of stablecoins, we can trace it back to 2014. At that time, to solve the problem of severe volatility in traditional Crypto Assets, Tether launched USDT, pioneering the way for stablecoins. USDT achieved currency stability by being pegged to the US dollar at a 1:1 ratio and supported by reserves of US dollar assets. This innovative model retains the convenience and decentralization characteristics of digital currency while effectively avoiding the trading risks brought about by price fluctuations.

In recent years, the application range of stablecoins has been continuously expanding, playing an increasingly important role in areas such as cross-border payments, decentralized finance (DeFi), and real-world asset tokenization (RWA). Especially in the DeFi ecosystem, stablecoins have become the foundation for core functions such as lending, staking, and liquidity provision.

With the rapid development of the stablecoin market, we have observed an interesting phenomenon: financial giants from China and the United States are participating in this competition in different ways. On one hand, there is the competition between onshore and offshore, and on the other hand, there is the contest between private enterprises and government experimental projects. This diversified participation is gradually reshaping the global financial order.

Looking ahead, the development of the stablecoin market is likely to bring more innovation and challenges. Regulatory uncertainties, the need for technological upgrades, and the increase in user adoption rates are all issues that the industry must face together. However, as more institutions and countries join this field, stablecoins are expected to play a greater role in promoting financial inclusion, improving transaction efficiency, and facilitating cross-border payments.

Overall, stablecoins are entering a new stage of development. They are not only an important part of the Crypto Assets ecosystem but are also likely to become a key bridge connecting traditional finance with the digital economy. In this new era full of opportunities and challenges, we look forward to seeing more innovations and breakthroughs that drive the global financial system towards a more open, efficient, and inclusive direction.