On December 9, the total market value of stablecoins reached a record $200 billion, representing a 13% increase from the previous month, according to BlockBeats. Analysts believe this surge is driven by investors seeking higher-yield opportunities on decentralized finance (DeFi) platforms. Coinbase analysts David Duong and David Han suggest that the rise in stablecoin market value signifies investors’ interest in taking advantage of the higher yields offered by DeFi lending protocols.
They explain that this increase represents new funds being used to capitalize on increased borrowing rates, which are more than three times higher than long-term bond yields. Additionally, investors are also looking for higher beta trading opportunities within the DeFi ecosystem.
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