"After the Passage of the U.S. Genius Act, Supply of Yield-Bearing Stablecoins like USDe Surges"

Since the passage of the Genius Act, a stablecoin regulatory bill in the United States, the supply of major yield-bearing stablecoins has surged.

On the 5th, cryptocurrency-focused media outlet Cointelegraph, citing data provider DefiLlama, reported that "following the passing of the Genius Act in the U.S. on the 18th of last month, the circulating supply of the yield-bearing stablecoins USDe and USDS increased by 70% and 23%, respectively." As a result, USDe climbed to third place among all stablecoins by market capitalization, while USDS rose to fourth place.

During this period, the circulating supply of USDe increased to 949 million, and the price of governance token ENA issued by Etena also surged nearly 60% over the same period to $0.58. The circulating supply of Sky's (formerly MakerDAO) USDS also expanded to 481 million.

As investor demand has flooded into the yield-bearing structure via stablecoins, demand for sUSDe, a staked form of USDe, has also surged, driving up the overall circulation of USDe.

Anthony Yim, co-founder of Artemis, commented on X (formerly Twitter), "Despite domestic issuance limitations, the supply of yield-bearing stablecoins in the U.S. has increased sharply," and evaluated, "They are the unexpected winners after the Genius Act."

Julio Moreno, Head of Research at CryptoQuant, also explained that "As issuers can no longer pay interest directly, investors are flocking to (stable)coins that offer returns via staking within their own protocols."

Meanwhile, the overall stablecoin market has also grown rapidly from $205 billion at the start of the year to $268 billion recently, a 23.5% jump. There are projections that if the current growth trend continues, stablecoin market capitalization could reach $300 billion by year-end.

On the other hand, Temujin Louie, CEO of Wanchain, warned, "Attempts by traditional financial institutions to tokenize assets could become an obstacle to the growth of stablecoins," adding, "Tokenization offers flexibility and speed to money market funds while also retaining safety and regulatory compliance."

Currently, USDe provides interest through its derivatives positions and staking structure, while USDS pays interest using returns based on real-world assets such as U.S. Treasury bonds. Based on real yield adjusted for inflation, sUSDe offers an annual yield of 10.86%, with an inflation-adjusted real yield of 8.16%. sUSDS yields 4.75% per year, with a real yield of 2.05%.