Arthur Hayes: The key to the success of stablecoins lies in distribution channels, and the stablecoin bubble will continue to expand

The latest article by BitMEX co-creator Arthur Hayes provides an in-depth analysis of the stablecoin market landscape. The article points out that the key to the success of stablecoins lies in the distribution channel, which is currently mainly achieved through crypto exchanges, social media platforms or traditional banks. Tether has become the world's leading stablecoin thanks to its cooperation with Bitfinex and the trust established in Greater China, especially in the global southern market. Circle, on the other hand, distributes USDC through cooperation with Coinbase, but its market share still lags behind Tether.
Hayes warned investors that new entrants face serious challenges with distribution channel closures, and predicted that with the success of the Circle IPO, the stablecoin bubble will continue to inflate, but will eventually burst on a project that separates "dumb money". He stressed that while stablecoin issuers are highly profitable (mainly from government bond yields), investors should be wary of high valuation risks, especially for projects that claim to work with traditional banks but have no actual distribution channels.