Pro
Experiments in Stablecoins
Key Insights
- Tether’s record profitability has spawned an array of copycats that have struggled to breach its moat.
- Centralized alternatives to USDT/USDC have typically only fared well with explicit incentives attached.
- The rise of synthetic stablecoins with Ethena has also attracted competitors with different tactics – these are likely to do well if the market’s animal spirits and demand for leverage return.
- Demand for purely decentralized stablecoins has been limited, but teams are experimenting with models that may better adapt to the current market environment or bootstrap a flywheel.
- Stablecoins likely to scale are those that integrate and partner with a wide set of centralized and decentralized venues or create a unique value proposition within an already popular ecosystem.
Crypto’s Killer App and its Monopoly Problem
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Prior to joining Messari, Andrew was an equity trader at a proprietary trading firm. His primary interests are understanding market dynamics, riding trends, and finding the occasional onchain winner.
Mentioned Assets