Matrixport: Stablecoin Liquidity Contracts, Short-Term Purchasing Power in Crypto Market Also Weakened

Odaily News Matrixport released its chart for today, stating that the "GENIUS Act" is expected to prohibit stablecoin issuers from paying interest or yields to holders. Funds may therefore shift towards yield-generating alternatives such as tokenized money market funds. USDC has seen net redemptions of approximately $6.5 billion over the past six weeks, leading to a contraction in stablecoin liquidity, which in turn has weakened short-term purchasing power in the crypto market.

At the same time, funds are flowing out of stablecoins into traditional safe-haven assets like gold and silver, further contracting the supply of stablecoins. Correspondingly, Circle is shifting its focus from "market cap size" to "transaction activity," and through initiatives like the Circle Payment Network, as well as partnerships with companies like Intuit, is promoting the use and payment adoption of stablecoins in real-world scenarios.