DWF Labs, a prominent crypto trading and market-making firm, is preparing to enter the booming stablecoin sector.

In an Aug. 1 statement on social media platform X, Andrei Grachev, the firm’s managing partner, stated:

“Following our plans to be a global web3 financial institution, I am happy to announce that DWF Labs is working on a CeDeFi synthetic stablecoin that will allow users to receive a nice yield without losing any flexibility in using their assets.”

Grachev did not disclose further details about the stablecoin. However, this move signals increasing institutional interest in the stablecoin market. Over the past year, major financial institutions like PayPal and Ripple have shown interest in the rapidly expanding sector.

Stablecoins have proven to be one of the most practical applications of crypto, offering a stable alternative to the volatility of digital assets like Bitcoin.

Stablecoin users in emerging economies like Venezuela and Nigeria often rely on the assets to hedge against declining national currencies and for everyday transactions.

CryptoSlate’s data shows that Tether’s USDT and Circle’s USDC dominate the $164 billion stablecoin industry, holding approximately 90% of the market share.

Stablecoin’s market cap grows.

DWF Labs’ move comes amid the continued rise in stablecoins market capitalization.

CCData reported that the total market capitalization for the assets grew by 2.11% in July to $164 billion, its highest point since Terra’s ecosystem collapsed in May 2022.

This increase marks the tenth consecutive month of growth for the sector and is the highest monthly rise since April.

Market observers explained that the increase indicates new capital entering the market, reflected in the positive movement of digital asset prices in July.

Despite this rising supply, stablecoins trading volume on centralized exchanges fell for the fourth month, dropping by 8.35% to $795 billion as of July 25.

Conversely, on-chain transactions surged by 18.3%, reaching $999 billion in July, the highest level since April. This represents a 69.4% increase from the previous year, driven by the impact of spot ETFs in the US.

Mentioned in this article

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision

Exit mobile version