Interest-earning stablecoins top $11 billion, achieving 4.5% market share

Interest-earning stablecoins have boomed to $11 billion, fueled by regulatory changes and growing user demand.
On the 21st (local time), Cointelegraph reported that the entire stablecoin market is expected to be valued at $1.5 billion in early 2024.
Interest-bearing stablecoins, which were once just 1% of the market, have now grown to $11 billion, accounting for 4.5% of the market. Of this, Pendle accounts for 30% of the total.
Pendle recently shared a report with Cointelegraph stating that its decentralized protocol will enable crypto investors to secure fixed returns or invest in floating rates.
FUN currently represents roughly 30% of the total committed assets (TVL) in interest-bearing stablecoins, or roughly $3 billion.
Fan revealed that 83% of the company's total TVL of $4 billion is in stablecoins, up from 20% a year ago.
Meanwhile, assets like Ethereum (ETH), which previously accounted for 80-90% of TVL, have now fallen to less than 10%.
Existing stablecoins such as USDT and USDC do not distribute interest income to users. Fan said, "Currently, there are over $200 billion in circulation, and the US Federal Reserve's base interest rate is 4.
Given the 3% level, stablecoin holders are missing out on potential revenues amounting to approximately $9 billion per year."