On June 2, Web3 market maker and investment firm DWF Labs announced a report regarding stablecoins and cryptocurrencies.
DWF Labs’ announcement introduces new initiatives tied to stablecoins, signaling how the sector is evolving from simple payment instruments into more complex financial infrastructure.
The report also underscores that the practical use of stablecoins remains to expand, with usage patterns steadily developing. It also suggests that, after 2025, stablecoin is projected to build a new stage of widespread adoption.
The firm highlights a broader transition toward real-world use cases of cryptocurrencies rather than speculative activity. In recent updates, it also illustrates how stablecoin supply has grown by more than 50% year‑over‑year, with over $20 billion now in yield‑bearing stablecoins.
This shift reflects a broader trend: stablecoins are no longer just transactional tools but are increasingly being used in asset management and liquidity provision.
The announcement underscores the maturation of crypto markets, where balance‑sheet mechanics and institutional credibility are replacing speculative cycles as the primary drivers of growth.
What Velocity is for Stablecoins
The firm contends that, in the context of stablecoins, “velocity” is a more essential tool than market capitalization.
DWF Labs describe velocity as a metric of how often a stablecoin is used in transactions. For instance, a reading of “20x” demonstrates that an individual stablecoin rotates and shifts ownership of about 20 times per year.
Furthermore, the company notes that increasing velocity shows an expanding real-world usage of cryptocurrencies, with funds actively rotating to enable transactions and higher transaction volumes.
According to a CoinPost report, stablecoin velocity has targeted a peak of 49.7x. The statistics gathered from Visa and Allium and excluding bot trading activity, high-frequency trading, and insider trading, depicts the increasing trend in usage intensity.
In support, DWF Labs highlighted that after five months, stablecoins have processed $6.54 trillion in validated transaction volume.
More importantly, the composition of this activity has shifted. Non-exchange use cases such as remittances, B2B, and B2C payments have rapidly increased, while exchange-linked transactions are currently for only a small portion of total volume.
Impact on the Stablecoin Market
The stablecoin market has long been dominated by fiat‑backed tokens like Tether (USDT) and USD Coin (USDC).
However, the rise in yield‑bearing stablecoins and new product innovations, such as payment cards and cashback programs, is reshaping the competitive landscape.
DWF Labs’ emphasis on stablecoins as credible financial infrastructure suggests that the market is entering a new phase where utility and institutional trust matter more than raw volume.
This evolution could lead to greater stability in times of stress, as projects with durable liquidity strategies are rewarded while those reliant on short‑term incentives fade.
For issuers, the message is clear: credibility and compliance are now essential. The days of unchecked growth fueled by opaque reserves are ending. Issuers will need to demonstrate robust governance, transparent reserve management, and the ability to integrate with broader financial systems.
Yield‑bearing stablecoins, in particular, raise questions about how reserves are invested and whether they expose holders to hidden risks.
As institutional players increasingly demand accountability, issuers who fail to meet these standards risk exclusion from major markets.
Evolving Regulatory Frameworks and Oversight
The regulatory implications of these developments are profound.
In the European Union, the Markets in Crypto‑Assets Regulation (MiCA) already imposes strict requirements on stablecoin issuers, including reserve transparency and redemption rights. In the United States, regulators are moving toward similar frameworks, with proposals to classify stablecoins as payment instruments subject to banking‑style oversight.
DWF Labs’ framing of stablecoins as financial infrastructure aligns with this regulatory trajectory, suggesting that issuers will need to operate under rules comparable to traditional financial institutions.
This convergence of market practice and regulatory oversight could reduce the risk of destabilizing “depeg” events, such as those seen with TerraUSD in 2022 or USDC during the Silicon Valley Bank collapse in 2023.
