Stablecoin activity on @Aptos has been on the rise as its total market cap peaked at $849M on February 14. And it matters more than you think.
The rise in a network’s stablecoin market cap can signal an increase in confidence for the ecosystem. A strong stablecoin usage rate can help expand a network’s DeFi sector by bringing more liquidity onchain and attracting more users to explore different DeFi protocols.
And in Aptos’ case, it's no different.
Stablecoins play a crucial role in Aptos’ DeFi ecosystem because it provides users better access for payment solutions on the network, like lending and borrowing protocols. Unlike other crypto assets, stablecoins are pegged to fiat currencies and offer user’s a more stable way to transact.
For context, $USDT and $USDC, which are the two largest stablecoin providers by market cap at $141.8B and $56.24B respectively.
On Aptos, the supply for $USDT is at $616.7M and $USDC at $143.7M. In the past month, on Aptos, $USDT saw an increase of 16.4% in market cap, which is about an $87M increase and $USDC grew by 19.2% or about $23M.
High stablecoin usage rate is crucial for Aptos’ DeFi presence since it can be used as onchain liquidity. More liquidity means more assets can be traded or used on the network. In turn, this can position Aptos as a crucial player in the crypto space and pave the way for broader adoption and institutional integration.
Aptos’ goal for its infrastructure is to be optimized for scalable, secure and interoperable stablecoin usage, @AptosLabs Co-Founder and CEO @AveryChing outlined during the Token Relations Quarterly Webinar in December. These use cases can position the network as a foundational layer for global financial inclusion, he added.
As stablecoins on Aptos rise, it directly strengthens the network’s DeFi ecosystem by laying the groundwork for further adoption in emerging markets where stablecoins provide essential financial services. This means payments solutions, lending protocols or even institutional-grade digital assets on the Aptos network can leverage this.