DWF Labs is set to introduce a synthetic stablecoin in the midst of the sector’s rapid expansion

According to CCData, Stablecoin’s market capitalization has increased for the tenth consecutive month.

DWF Labs, a renowned trading and market-making firm in the crypto industry, is in the process of entering the rapidly expanding stablecoin sector.

The firm’s managing partner, Andrei Grachev, issued a statement on social media platform X on August 1 and stated:

“I am delighted to inform you that DWF Labs is currently developing a CeDeFi synthetic stablecoin, which will enable users to earn a substantial yield without sacrificing their asset utilization flexibility, in accordance with our aspirations to become a global web3 financial institution.”

There were no additional details regarding the stablecoin that Grachev disclosed. Nevertheless, this action indicates that institutional interest in the stablecoin market is on the rise. The quickly expanding sector has garnered the attention of major financial organizations, including Ripple and PayPal, in the past year.

One of the most practical applications of crypto is stablecoins, which provide a stable alternative to the volatility of digital assets such as Bitcoin.

In developing economies such as Venezuela and Nigeria, stablecoin users frequently depend on the assets to protect against the falling value of their national currencies and for daily transactions.

CryptoSlate’s data indicates that Circle’s USDC and Tether’s USDT are the dominant players in the $164 billion stablecoin industry, respectively, with approximately 90% of the market share.

In July, the total market capitalization of the assets increased by 2.11% to $164 billion, marking the highest point since the collapse of Terra’s ecosystem in May 2022, according to CCData.

This increase represents the sector’s eleventh consecutive month of growth and the most significant monthly increase since April.

According to market analysts, the rise in prices of digital assets in July is indicative of the influx of new capital into the market.

The trading volume of stablecoins on centralized exchanges decreased for the fourth consecutive month, falling by 8.35% to $795 billion as of July 25, despite the increasing supply.

In contrast, on-chain transactions experienced an 18.3% increase, reaching $999 billion in July, the greatest level since April. This is a 69.4% increase from the previous year, primarily due to the influence of spot ETFs in the United States.

Also Read: Bitbank plans for Tokyo Stock Exchange IPO as institutional crypto interest surges