The stablecoin market continues to rise, leading a new wave of encryption payments.

Despite the overall pressure on the cryptocurrency market, stablecoins have risen against the trend. According to data platform statistics, the total market value of stablecoins has reached $230.45 billion, a 56% rise compared to the same period last year. Within this market, a certain stablecoin dominates, with a market value of nearly $144 billion, accounting for 62.6%. Following closely is another well-known stablecoin, with a market value of $59 billion.

Stablecoins, as an important component of the encryption ecosystem, aim to maintain a relatively stable value. They are often pegged to traditional assets such as the US dollar, euro, or gold to reduce the inherent volatility of the crypto market. In the current economic environment, the rise of stablecoins is seen as a continuation of the US dollar's dominance.

Globally, governments and financial institutions are actively laying out plans in the stablecoin sector. Regions such as Hong Kong, Japan, and Thailand have successively introduced relevant policies to pave the way for the application of stablecoins. Meanwhile, several international banks and fintech companies are also developing their own stablecoin products, aiming to capture a share of the future cross-border payment market.

Stablecoins can be divided into four categories: fiat-collateralized, crypto-asset collateralized, algorithmic, and emerging stablecoins. Fiat-collateralized stablecoins are backed by fiat currency and are typically issued at a 1:1 ratio. Crypto-asset collateralized stablecoins use other digital assets as collateral and usually require over-collateralization to ensure stability. Algorithmic stablecoins rely on algorithms to maintain price stability but face significant risks in practice. Emerging stablecoins combine various mechanisms, such as Delta hedging strategies or backing by real-world assets.

Stablecoins are gradually becoming an innovative force in the payment field. In 2024, the payment settlement volume of stablecoins is expected to reach approximately $5.6 trillion, which is 20 times that of 2020. There are 20 million active addresses trading stablecoins each month, with over 120 million addresses holding stablecoin balances. Compared to traditional payment systems, stablecoins offer faster and lower-cost cross-border payment solutions.

Multiple blockchain platforms are vigorously developing stablecoin payment features to meet the needs of different scenarios. In terms of transaction volume, some public chains are at the forefront, but emerging platforms are also actively laying out their presence in the payment sector.

Looking ahead, stablecoins will play an increasingly important role in the digital financial ecosystem. Changes in the regulatory environment will be a key factor in their development. Central banks and regulatory agencies around the world are closely monitoring stablecoins and gradually formulating corresponding regulatory frameworks.

The biggest opportunity for cryptocurrency may lie in its potential as a new payment method. In this round of stablecoin bull market, we expect to witness how stablecoins reshape the traditional payment market landscape.