Arthur Hayes Warns Circle’s IPO Might Ignite ‘Stablecoin Mania’ Bubble
Circle’s IPO might fire up a risky bubble, cautions Arthur Hayes, as the stablecoin market swells to an all-time high of $228B.
“The bubble will pop after the launch of a stablecoin provider on a public market, most likely in the U.S., that separates fools from tens of billions of capital by utilizing a mix of financial engineering, utilize, and amazing showmanship,” Hayes predicted. He hinged his thesis on one important factor for any stablecoin’s survival: distribution at scale. “The stablecoin story is special in that it has the biggest most obvious TAM for a TradFi muppet,” the crypto lover wrote, acknowledging the appeal however anticipating a “road to destruction” for those who will invest in brand-new stablecoin companies doing not have Tether’s network results or Circle’s connection with Coinbase.
Booming Stablecoin Market
Hayes’ warning comes against a backdrop of indisputable sector momentum. USDC appears to have finally shaken off the aftereffects of its 2023 depeg crisis following the Silicon Valley Bank collapse, rising 39% to $61 billion. Liquidity is also flooding exchanges, with ERC-20 stablecoin reserves striking about $50 billion, and yield-bearing stablecoins recuperating to $6.9 billion.
The post Arthur Hayes Alerts Circle’s IPO Could Spark ‘Stablecoin Mania’ Bubble appeared initially on CryptoPotato.
