Report: The global supply of stablecoins has dropped by 2.7% from its peak at the end of August, and it is expected to rebound before the U.S. election

According to Crowdfund Insider, a research report by OurNetwork shows that the global stablecoin supply has dropped 2.7% from its peak on August 30th. However, with the upcoming U.S. election and rising cryptocurrency prices, it is expected that the stablecoin supply will rebound.

The report points out that the relatively low stablecoin supply in the past 60 days is related to "the decline in PayPal's PYUSD supply after several SolanaDeFi protocols launched liquidity incentives associated with it." At its peak, "the annual interest rate for lending PYUSD on Kamino Finance was close to 20%, but now it's only at 7.9%."

In addition, the supply of euro-pegged stablecoins is growing; Circle's EURC supply "has grown more than 40% over the past month". Base has been a major beneficiary network as EURC value on this chain increased from $22 million to $48 million.