TLDR Tech / Crypto
The Capital Suck: Stablecoin Flywheel Economics
Onchain stablecoins generate 122x annual economic velocity per dollar deployed, compared to PayPal's ~40x turnover and US M2's 1.4x, with each $1B in stablecoin supply producing roughly $19M in annualized protocol revenue (excluding issuer float). Supply has grown 60x since 2020 to ~$300B, still just 1.4% of US M2, while tokenized RWAs have tripled to ~$25B over two years, led by BlackRock's BUIDL crossing $2B. The flywheel is now showing in market-hours displacement: during the Iran escalation, traders routed volume to onchain perps on platforms like Hyperliquid rather than waiting for traditional venues to reopen.
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