Everyone wants in on the stablecoin boom

TL;DR:

Stablecoin surge: Tech and crypto firms are launching stablecoins to tap into the $169 billion market, focusing on regulation to differentiate but facing competition from giants like Tether.

Web3 gaming rise: Web3 gaming uses blockchain for asset ownership and play-to-earn models, driving player engagement and community involvement, but faces challenges like over-tokenization.

Tech and crypto firms rush to capitalize on stablecoin boom

As the digital asset market recovers, a wave of new entrants, including tech companies, crypto firms, and even a U.S. state, are launching their own stablecoins to cash in on the growing market. Companies like Mercado Libre, Banking Circle, Paxos International, and IDA from Hong Kong, alongside Wyoming, have recently announced plans for stablecoins. These new entrants follow in the footsteps of Ripple and PayPal, who are already active in the stablecoin space.

Key highlights:

• Growing market: The stablecoin market has surged to a record $169 billion in circulation as prices of major cryptocurrencies like Bitcoin and Ethereum hit new highs.

• What are stablecoins?: Stablecoins are digital assets designed to maintain a stable value by being pegged to a reserve currency like the U.S. dollar, allowing for more efficient trading between crypto assets.

• Profit potential: Many newcomers are drawn by the profit potential. For example, Tether, which dominates the stablecoin market with 70% share, earned $5.2 billion in net profit in the first half of the year by holding reserves in U.S. Treasuries.

• Limited use beyond trading: Despite the excitement, critics argue that most stablecoins are primarily used for trading rather than everyday transactions. According to Visa, a significant portion of stablecoin payments is linked to trading algorithms, not consumer purchases.

• Regulation as a differentiator: New stablecoin issuers are emphasizing their willingness to be regulated to distinguish themselves. For instance, IDA is developing a Hong Kong-regulated stablecoin, while Banking Circle recently launched a euro-backed stablecoin, Eurite.

Challenges Ahead:

Despite the potential, many experts believe that without unique features or substantial regulatory backing, most new stablecoins may struggle to compete with established giants like Tether and Circle. Stablecoins are seen as a "novelty asset" with limited use cases beyond trading and storing value.

The rush to launch new stablecoins highlights both the growing interest in digital assets and the challenges of differentiating in a crowded market. While some see the potential for these digital currencies to revolutionize payments, others warn that the vast majority may not survive.

Web3 gaming is on the rise. Here’s what you need to know.

Web3 gaming is shaking up the gaming industry by using blockchain technology to give players more control and ownership over in-game assets. Unlike traditional games where developers hold all the power, Web3 games allow players to truly own, trade, and interact with their digital assets, making for a more engaging and transparent experience.

Why Web3 gaming is taking off…

Web3 games like My Pet Hooligan, which has surpassed 400,000 downloads in early access, are leading the charge. These games offer:

• True ownership: Players own their characters, items, and other assets, which are secured and tradable on the blockchain.

• Play-to-Earn opportunities: Players can earn digital rewards or cryptocurrency through gameplay, adding a new dimension to player engagement.

• Community involvement: Web3 games often give players a say in game development, fostering a more involved and loyal community.

Success and challenges: My Pet Hooligan is an example of Web3 gaming done right, combining strong characters, engaging gameplay, and player-generated content to create a dynamic social experience. However, Web3 games face challenges like over-tokenization, where the focus on digital currencies can overshadow the actual gaming experience.

The future of Web3 gaming: Looking ahead, Web3 gaming is set to bring more transparency and player-driven innovation to the industry. With platforms like the KARRAT Protocol supporting decentralized development, the future of gaming could be more collaborative and community-focused than ever before.

Bottom line: Web3 gaming is making waves by blending core gaming elements with cutting-edge technology like blockchain and AI. As the industry evolves, the key will be balancing innovation with what makes games fundamentally fun and engaging.

Extra reads

• Zynga sells web3 game Sugartown to D20 Labs [link]

• Web3 security firm Hypernative raises $16 million in Series A funding [link]

• Mastercard enables non-custodial crypto spending in new partnership [link]

• Trump's new crypto business could create more conflicts if he's elected president [link]