### Stablecoins Gain Momentum Amid Market Challenges Stablecoins are experiencing significant growth, even as major smart contract platforms like Ethereum and Solana face declining activity, according to an April 3 report from asset manager VanEck. #### Market Sentiment and Macroeconomic Factors The recent lull in smart contract platform activity is linked to **cooling market sentiment** driven by geopolitical tension, including U.S. trade policies and a potential trade war, impacting traders' confidence across the cryptocurrency landscape. Matthew Sigel, VanEck’s head of research, noted in an April 4 post that ongoing **macroeconomic uncertainty** might actually bolster crypto’s strategic value, further supporting the development and adoption of stablecoins—a key indicator of the overall health of the Web3 ecosystem. #### Growth in Stablecoin Adoption The report highlighted that stablecoins collectively added nearly **$10 billion** in market capitalization during March. This surge comes despite a decline in average yields for stablecoins, which now range between **3% to 5%**, down from as high as **10%** at the beginning of the year. Interestingly, the issuance of **tokenized Treasury Bills**, a primary source of stablecoin yield, also saw a notable increase of **26%** from February to March, exceeding **$5 billion** in total issuance. #### Challenges for Smart Contract Platforms In stark contrast to the stablecoin market, smart contract platforms reported declines in activity—**revenues** and **trading volumes** dropped by **36%** and **40%**, respectively. Solana was particularly hard-hit, with daily fee revenues and decentralized exchange (DEX) volumes plunging by **66%** and **53%** in March. This downturn has caused Solana's DEX volume share to dip below that of Ethereum, following a brief period in February when it had surpassed Ethereum’s volumes. The decline in Solana's activity is largely attributed to a slowdown in **memecoin trading**, a sector that has struggled since controversies around memecoins negatively impacted retail trader sentiment. #### Comparative Performance While Solana's metrics falter, Ethereum’s layer-2 solutions have also seen trading volumes decrease, albeit not as severely. As of the last week of March, Ethereum’s **blob fees**—a key income source from its layer-2 solutions—plummeted to their lowest levels of the year, showcasing the overall challenges faced by smart contract platforms during this period. In summary, stablecoins are thriving amid broader market challenges, while smart contract platforms like Ethereum and Solana grapple with decreasing activity and revenue.

### Stablecoins Gain Momentum Amid Market Challenges Stablecoins are experiencing significant growth, even as major smart contract platforms like Ethereum and Solana face declining activity, according to an April 3 report from asset manager VanEck. #### Market Sentiment and Macroeconomic Factors The recent lull in smart contract platform activity is linked to **cooling market sentiment** driven by geopolitical tension, including U.S. trade policies and a potential trade war, impacting traders' confidence across the cryptocurrency landscape. Matthew Sigel, VanEck’s head of research, noted in an April 4 post that ongoing **macroeconomic uncertainty** might actually bolster crypto’s strategic value, further supporting the development and adoption of stablecoins—a key indicator of the overall health of the Web3 ecosystem. #### Growth in Stablecoin Adoption The report highlighted that stablecoins collectively added nearly **$10 billion** in market capitalization during March. This surge comes despite a decline in average yields for stablecoins, which now range between **3% to 5%**, down from as high as **10%** at the beginning of the year. Interestingly, the issuance of **tokenized Treasury Bills**, a primary source of stablecoin yield, also saw a notable increase of **26%** from February to March, exceeding **$5 billion** in total issuance. #### Challenges for Smart Contract Platforms In stark contrast to the stablecoin market, smart contract platforms reported declines in activity—**revenues** and **trading volumes** dropped by **36%** and **40%**, respectively. Solana was particularly hard-hit, with daily fee revenues and decentralized exchange (DEX) volumes plunging by **66%** and **53%** in March. This downturn has caused Solana's DEX volume share to dip below that of Ethereum, following a brief period in February when it had surpassed Ethereum’s volumes. The decline in Solana's activity is largely attributed to a slowdown in **memecoin trading**, a sector that has struggled since controversies around memecoins negatively impacted retail trader sentiment. #### Comparative Performance While Solana's metrics falter, Ethereum’s layer-2 solutions have also seen trading volumes decrease, albeit not as severely. As of the last week of March, Ethereum’s **blob fees**—a key income source from its layer-2 solutions—plummeted to their lowest levels of the year, showcasing the overall challenges faced by smart contract platforms during this period. In summary, stablecoins are thriving amid broader market challenges, while smart contract platforms like Ethereum and Solana grapple with decreasing activity and revenue.