Yield-bearing stablecoins have surged to $11 billion, representing 4.5% of the stablecoin market, up from $1.5 billion and 1% market share at the beginning of 2024. Pendle, a decentralized protocol allowing users to lock in fixed yields or speculate on variable rates, has captured 30% of the market share, with $3 billion in total value locked (TVL). Stablecoins now make up 83% of Pendle's TVL, a rise from less than 20% a year ago. Traditional stablecoins like Tether and USDC do not provide interest to holders, with Pendle estimating that users may be missing out on over $9 billion in annual yields due to current interest rates. Regulatory clarity under the US President Trump administration has favored this growth, with stablecoin issuance expected to double to $500 billion in the next 18 to 24 months. Pendle anticipates that yield-bearing stablecoins will capture 15% of that market. Furthermore, Pendle is expanding its offerings beyond Ethereum and anticipates growing interest in yield generation among retail and institutional investors.

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