Stablecoins is in a “own bull market” amid the market-wide turmoil of smart contract platforms (including Ethereum and Solana) even if they are sputtered, asset manager Vanek said in a monthly note on April 3rd.
The decline in activity on smart contract platforms reflects the sentiment of cryptocurrencies and beyond that of cooling markets as traders close on the impact of President Donald Trump’s sweeping tariff policies and the looming trade war.
However, the adoption of Stablecoin, an important measure of Web3’s overall health, continues in stages. This is because Vaneck’s research director Matthew Sigel said in the April 4th X-Post, as continued macroeconomic uncertainty “can accelerate strategic cases of cryptographic materials.”
The tokenized Treasury bill will help support the adoption of Stablecoin. sauce: Vaneck
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Stablecoins acquire steam
Stablecoins collectively added a market capitalization of nearly $10 billion in its total market capitalization in March, as multiple publishers, including Vaneck, are preparing to launch the brand’s Stablecoin products.
Asset managers continued inflow despite a sharp drop in average stability yields.
Stablecoin yields currently range from around 3% to 5% (close or slightly lower than the Treasury bill), compared to 10% at the beginning of the year.
Still, the report states that the issuance of tokenized Treasury bills – the major source of institutional stubcoin yields – an increase of 26% from February to March, surpassing the $5 billion issue.
Ethereum and Solana slow down
Meanwhile, the report found that the smart contract platform had a total decline in activity, with revenues and trading volumes down 36% and 40%, respectively.
Solana is particularly keenly struggling. Vaneck said in March, daily fee revenue and diversified exchanges (DEX) fell by 66% and 53% respectively.
In fact, after temporarily exceeding them in February, Solana’s volume dex share fell below Ethereum and its Layer 2 scaling chain (L2) once again.
Solana lost the ground to Ethereum at Dex Volume. sauce: Vaneck
This relative decline partly reflects the slowdown in Memecoin trading and controls Solana Dex’s activity.
The segment has been suffering since February after a series of memocoin-related scandals have exacerbated feelings among retailers.
On February 14th, Libra, a mimecoin believed to have been approved by Argentine President Javier Mailei, erased its market capitalization of around $4.4 billion within hours of its release.
In March, Ethereum’s L2 trading volume also fell – a retreat of about 18% since February, but according to Vaneck, it was better than Solana’s.
According to Etherscan, in the last week of March, BLOB FEES, a source of income from L2, the Ethereum Network’s main source of income, has sunk to the lowest weekly level ever so far this year.
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