Bitcoin breaks through $110,000 to create a new historical high, stablecoin sector welcomes new opportunities

This week, the cryptocurrency market showed a general upward trend, with Bitcoin breaking through the $110,000 mark on May 22, the day of Pizza Day, driven by institutional support, setting a new historical high. Ethereum and popular sectors like AI and Meme also saw an overall increase.

In terms of policy regulation, the GENIUS Act in Hong Kong and the United States lays out the framework for the stablecoin industry, leading to fluctuations in related DeFi assets. The Texas Senate has passed a Bitcoin reserve bill, which is expected to make it the third state in the U.S. to establish an official Bitcoin reserve.

Meanwhile, a certain public chain ecosystem suffered a $223 million hacker attack, leading to a brief collapse of the ecosystem. Trump's attendance at the dinner raised questions of political corruption.

The Trump family's USD1 stablecoin has become the market focus, as a trading platform launches the USD1/USDT trading pair. With the advancement of the GENIUS Act, the narrative around stablecoin compliance is heating up. The integration of USD1 into the BSC and Tron ecosystems has driven the prices of related projects to rise. Market trading volume has increased by 2.42%, and investor confidence is high. The speculation centered around USD1 may dominate the short-term market trend, and the DeFi and RWA projects within the BSC and Tron ecosystems are worth paying attention to.

The narrative of USD1 heats up

On May 22, the Trump family project WLFI announced an investment of $25,000 to purchase 636,961 $B tokens to encourage the use of $USD1 as the base trading pair. After the news was released, the $B token saw a daily increase of 7 times. Previously, project tokens that had cooperated with WLFI, such as Lista and Sto, also experienced increases. Subsequently, a trading platform launched the USD1/USDT spot trading pair, setting the market tone for the medium to short term to focus on speculation of assets related to USD1.

Follow a certain trading platform ecosystem

A trading platform's deep ties with the Trump family:

• The Trump family had been negotiating since March regarding a stake in a certain trading platform's U.S. subsidiary. In May, Trump's second son stated that the WLFI stablecoin USD1 would be used to complete the $2 billion investment in the platform.
• The founder of the platform is serving a prison sentence for violating U.S. money laundering and sanction laws, and it has recently been confirmed that his legal team has submitted a pardon application to Trump on his behalf. The two parties are very likely to sign relevant agreements in exchange for mutual benefits.

Layout stablecoin:

• On May 20, the U.S. Senate passed a procedural motion for the GENIUS stablecoin bill, marking an important step for compliant stablecoins. For Trump, the emergence of new stablecoins may increase demand for U.S. Treasury bonds, as they are often used as reserve assets. With the ongoing budget deficit in the U.S., Treasury bonds are a key financing tool, so the passage of the bill is just a matter of time. Once passed, it will be a significant boon for public chains and DeFi products in the crypto market.
• The stablecoin giant's annual net profit exceeded $13 billion in the fourth quarter of 2024, with the group's stock price soaring above $20 billion, proving that the stablecoin direction has tremendous profit potential. Additionally, many RWA and on-chain activities are based on stablecoin as the underlying currency. In light of this, the FDUSD supported by a certain platform has fallen into decline, while the strategic development of that platform itself requires a stablecoin narrative. Therefore, USD1 is the current suitable choice, conveniently riding on Trump's coattails.

According to statistical data, the current market capitalization of USD1 is $2.139 billion, mainly issued on the BSC chain, which confirms the speculation about USD1's collaboration with a certain platform. The USD1 Vault of the Lista DAO lending product Lista Lending has become the first application of USD1 on the BNB Chain.

BSC ecosystem related project dynamics:

• StakeStone(STO): On May 22, it was announced that USD1 will soon land on LiquidityPad, bringing new earning opportunities and deeper DeFi integration.
• Lorenzo Protocol(BANK): On May 22, the $BANK-SUSD1 trading pair was launched on a certain DEX.
• Thena(THE): Launched on May 22 the first incentive pool based on its new liquidity infrastructure: USDT/USD1.
• Aster( has not issued coins): On May 15th, it integrated USD1, becoming the first decentralized exchange for perpetual contracts to support USD1 as collateral.

The ecological projects of the above-mentioned platform have performed well in the market under the speculation of USD1.

Focus on the Tron ecosystem

A well-known figure voluntarily pledged allegiance to the Trump family:

• The individual invested $75 million in the cryptocurrency project WLFI, becoming the largest known individual investor and an advisor to WLFI. Interestingly, he was previously sued by the U.S. Securities and Exchange Commission for selling unregistered securities and fraud, but in February 2025, the SEC suspended the case against him.
• He holds $18.6 million worth of TRUMP tokens, participating in the Trump dinner on May 22 as the largest holder of TRUMP.
• WLFI co-founder Zack Witkoff stated that the USD stablecoin USD1 issued by WLFI will also be natively issued on the Tron chain.

Asset target:

• TRON (TRX): A TRON project founded by a well-known individual, its native token TRX is the core asset of the TRON network, used for a decentralized content entertainment ecosystem.

• As the GENIUS stablecoin bill enters the formal review stage, the compliance narrative around stablecoins is increasingly becoming a mainstream focus. Notably, a certain stablecoin has issued $75.4 billion on Tron, while Ethereum ranks second with $62.1 billion issued. USDC has issued $36.1 billion on Ethereum and $8.6 billion on the Solana chain. From this perspective, the stablecoin narrative battle is centered on Ethereum and Tron, but considering that a certain well-known individual is an advisor to WLFI and has a vested interest with the Trump family, it cannot be ruled out that Tron is likely to become one of the winning sides in the stablecoin narrative.

• JustLend(JST): JustLend is a token market protocol based on TRON, aimed at establishing a liquidity pool, with interest rates determined by an algorithm based on the supply and demand of TRON assets. As USD1 is highly likely to choose TRON as one of its main issuance public chains, the lending protocol JustLend will benefit from the increase in trading volume, enhanced liquidity, user growth, and increased opportunities for returns brought by USD1, consequently raising the price of JST.

• SUN (SUN): SUN is the community governance and DeFi token of the TRON ecosystem, supporting liquidity mining and decentralized exchanges ( such as SunSwap ). SUN collaborates with JustLend and USDD, also benefiting from the growth of the TRON ecosystem, but has a lower market cap and higher volatility.

GENIUS stablecoin Act

The core content of the bill

Issuing entity and regulation:

• Only approved issuers are allowed to issue payment stablecoins to U.S. users, including bank subsidiaries and federally or state-qualified non-bank issuers. The state-level issuance is limited to $10 billion (.
• Issuers can choose federal or state-level regulation, supervised by the corresponding institutions. Large issuers ) with a market value of over $10 billion, such as Tether and Circle (, must be directly regulated by the Federal Reserve System or the OCC, while smaller issuers are regulated by the states.

Reserves and Disclosure:

• Reserve assets must be held in a 1:1 ratio, such as US dollars or liquid assets. Stablecoin issuers must hold an equivalent amount of cash or short-term US Treasury bonds as reserves.
• The redemption policy must be made public, with reserve details disclosed monthly.

Other provisions:

• Foreign issuers must meet specific conditions to provide stablecoin in the United States.
• Payments in stablecoins are not considered securities, and the issuing entity must comply with anti-money laundering regulations.

Additionally, the currently published version clearly states the restriction on large technology companies issuing stablecoins: it prohibits non-financial listed companies from issuing stablecoins unless they meet strict standards for financial risk, consumer data privacy, and fair business practices, preventing large technology companies from issuing stablecoins and maintaining the separation of banking and commerce. It is also not difficult to understand why a certain asset management giant chose to sign a cooperation agreement with Circle, committing not to issue competitive USD payment stablecoins for four years, which helps it avoid strict regulation to some extent.

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) stablecoin track

The entire stablecoin sector is the first to be affected by this legislation. Currently, the total market value of stablecoins has reached 245 billion USD, a significant increase from 200 billion USD at the end of 2024, with predictions that it may reach 400 billion USD by 2025. This piece of cake is definitely getting bigger. One well-known stablecoin currently has a market value of about 143 billion USD, with a trading volume accounting for over 75%. Approximately 60% of its reserves are in U.S. short-term Treasury bonds, which basically meets the requirements of the legislation. However, it faces strict regulatory limitations in the U.S., and may later launch a stablecoin specifically for the U.S. market. Although USDC has a market value of only 60 billion USD, it complies with similar regulations in Europe and the U.S., is advancing its IPO process, and is closely collaborating with a certain trading platform. Therefore, the competition for the top stablecoin is still ongoing. With the influx of various compliant stablecoins, market competition will become more intense.

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stablecoin/Fixed Income Sector:

Ethena Labs:

USDtb, developed by Ethena Labs, is a fully collateralized stablecoin with a current market cap of approximately $1.4 billion. USDtb is backed by a tokenized asset from a certain asset management giant, BUIDL), and other high-liquidity assets, and has been integrated into a certain DeFi lending platform, enhancing the liquidity of dollar lending.

The GENIUS Act emphasizes that collateralized stablecoins must hold sufficient reserve assets, and the fully collateralized model of USDtb is highly consistent with this requirement. Compared to pure algorithmic stablecoins like the early UST(, the collateralized nature of USDtb makes it more compliant and stable within the regulatory framework.

Pendle:

Pendle Finance's business in stablecoins mainly focuses on yield tokenization, fixed income products, and optimizing yields from stablecoin liquidity pools. By integrating with multiple DeFi protocols, it provides users with flexible yield management and fixed income solutions. The passage of the GENIUS stablecoin bill will enhance the market trust and adoption rate of stablecoins, directly benefiting Pendle's business growth, especially in the fixed income sector. The $PENDLE token, due to its core position in the platform, has short-term speculation and long-term growth potential.

Frax Finance:

Frax Finance, as a stablecoin issuer )FRAX(, directly benefits from the regulatory clarity provided by the bill. The bill clarifies the definition and requirements for payment stablecoins. Although FRAX is a fractional algorithmic stablecoin, its partially collateralized features, such as 15% being U.S. Treasury bonds ), may allow it to meet the reserve requirements of the bill. However, the bill excludes synthetic stablecoins, which may impose restrictions on the algorithmic aspect of FRAX. Frax Finance needs to adjust its model to comply with regulatory requirements, or it may face a loss of market share.

( Layer1

Public chains with high-frequency stablecoin use cases are also among the beneficiaries. Currently, the preferred choices are between Ethereum, Solana, and Tron, which are the three largest public chains in the stablecoin market. However, due to the political background of USD1 being closely associated with BSC, BSC may also be one of the potential public chains. This extends to RWA, PayFi, and DeFi products on various chains, which are also worth paying special attention to.

![Weekly Market Hotspot Review: Bitcoin Breaks 110,000, USD1 Craze Sweeps, Stablecoin Bill