Stablecoins are “in a bull market of their very own,” whilst sensible contract platforms — together with Ethereum and Solana — sputter amid the marketwide tumult, asset supervisor VanEck stated in an April 3 month-to-month notice.
The diminished exercise on sensible contract platforms displays cooling market sentiment in cryptocurrencies and past as merchants brace for the affect of US President Donald Trump’s sweeping tariff insurance policies and a looming commerce battle.
However stablecoin adoption — a key measure of Web3’s general well being — continues apace. That is partly as a result of ongoing macroeconomic uncertainty “might speed up the strategic case for crypto,” Matthew Sigel, VanEck’s head of analysis, stated in an April 4 X put up.
Tokenized treasury payments assist help stablecoin adoption. Supply: VanEck
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Stablecoins acquire steam
Stablecoins collectively added practically $10 billion in whole market capitalization in March as a number of issuers, together with VanEck, put together to launch branded stablecoin merchandise, it stated.
The inflows endured regardless of a steep drop in common stablecoin yields, the asset supervisor famous.
Stablecoin yields now vary from round 3% to five% — close to or barely beneath Treasury Payments — in comparison with as excessive as 10% initially of the 12 months, it stated.
Even so, issuance of tokenized Treasury Payments — a main supply of institutional stablecoin yield — elevated 26% from February to March, surpassing $5 billion in whole issuance, based on the report.
Ethereum, Solana decelerate
In the meantime, sensible contract platforms suffered across-the-board declines in exercise, with revenues and buying and selling volumes dropping 36% and 40%, respectively, based on the report.
Solana has suffered notably sharply. Each day payment revenues and decentralized trade (DEX) volumes diminished by 66% and 53%, respectively, in March, VanEck stated.
In reality, Solana’s DEX share of volumes as soon as once more fell beneath these of Ethereum and its layer-2 scaling chains (L2s) after briefly surpassing them for the primary time in February.
Solana misplaced floor to Ethereum in DEX quantity. Supply: VanEck
This relative decline partly displays a slowdown in memecoin buying and selling, which nonetheless dominates Solana DEX exercise.
The section has suffered since February after a collection of memecoin-related scandals soured sentiment amongst retail merchants.
On Feb. 14, Libra, a memecoin seemingly endorsed by Argentine President Javier Milei, erased some $4.4 billion in market capitalization inside hours of launching.
In March, buying and selling volumes on Ethereum’s L2s additionally skilled declines — retracing by some 18% from February — however held up higher than Solana’s, based on VanEck.
Throughout the last week of March, “blob charges,” the Ethereum community’s important supply of earnings from L2s, sunk to the bottom weekly ranges thus far this 12 months, based on Etherscan.
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