What is a Stablecoin
Stablecoins are cryptocurrencies that are designed to maintain a stable value by pegging their market price to a reference asset, such as a fiat currency like the U.S. dollar or gold.
Stablecoins rely on different mechanisms to ensure that their value is consistent with the underlying asset. Fiat-backed stablecoins maintain their peg by ensuring that each issued token can be exchanged for an equal amount of fiat currency.
Stablecoin Value and Trends
According to a new report released by Citigroup’s Global Perspectives & Solutions on April 24, stablecoins are shifting from cryptocurrency-centric applications to broader financial and public use scenarios.
On April 25, 2025, Citi Institute, a subsidiary of Citibank, released a research report on "Digital Dollar", stating that 2025 is expected to be the "ChatGPT moment" for the application of blockchain in the financial and public sectors. It predicts that the total circulating supply of stablecoins in 2030 may grow to US$1.6 trillion in the base case, US$3.7 trillion in the optimistic case, and around US$500 billion in the pessimistic case.
As of April 2025, the total circulating supply of stablecoins has exceeded $230 billion, an increase of 54% since April 2024.
Stablecoins are classified as payment currencies in the entire cryptocurrency field, and together with security currencies (RWA), meme coins (DOGE), reserve currencies (Bitcoin), and functional currencies (ETH) form a system in the cryptocurrency field. Because they are equivalently linked to the value of real assets, stablecoins have always served as a value exchange tool between different cryptocurrencies in the cryptocurrency field. This special attribute has brought stablecoins a continuous growth momentum. This growth trend is related to factors such as stablecoins' cross-border instant transactions and settlements, low fees, and widespread adoption.
Stablecoin drives DeCloud development
1. Reduce the cost of acquiring computing power and the entry threshold
Decentralized cloud computing power (DeCloud) is the infrastructure of DePIN, forming an ecological market for automated computing power transactions through the on-chain economy. The widespread adoption of stablecoins by more people around the world is a boon to the development of DeCloud. Users can directly convert and trade with native currencies in decentralized cloud computing power projects (for example, the decentralized cloud computing power project PowerVerse has $PEC currency) by holding stablecoins, making it easier to obtain computing power resources and further reducing the cost of obtaining computing power.
2. Enhanced liquidity and improved transaction efficiency
Stablecoins improve the overall liquidity of on-chain assets. When users purchase, lease, and trade computing resources, they can complete payment and settlement more quickly and securely, reducing delays and high fees caused by fiat currency channels, which helps promote the activity and transaction scale of the DeCloud market.
3. Support cross-border payments and expand global users
Since stablecoins are naturally borderless, users can participate in the DeCloud ecosystem without relying on the traditional banking system or local currency exchange processes. This will make it easier for DeCloud to cover the global market, especially for users in regions with high inflation and weak financial infrastructure, providing low-threshold computing power access opportunities and further expanding the user base.
4. Reduce systemic financial risks
As an on-chain settlement tool, stablecoins can help the DeCloud ecosystem reduce potential risks brought by the traditional financial system, such as fiat currency depreciation, foreign exchange controls, and bank payment obstructions. By using stablecoins as the main circulation medium, DeCloud can maintain the stability and continuity of transactions and operations in a complex and changing global financial environment.
5. Stabilize settlement medium and reduce income volatility
Although the DeCloud platform uses native tokens (such as PowerVerse's $PEC) as an incentive mechanism, users can partially hedge the impact of native token price fluctuations in the process of purchasing and exchanging computing resources through stablecoins. As a transfer medium, stablecoins can help improve the value stability of users in the process of capital circulation and enhance the overall user experience.
6. Promote DeFi integration and financial innovation
With the expansion of the use of stablecoins, the DeCloud ecosystem can more easily access decentralized financial (DeFi) applications and promote the financial innovation of computing power assets. For example, in the future, users can improve the capital utilization efficiency of computing power assets by mortgaging computing power contracts and participating in liquidity mining, explore new models such as "computing power NFT" and "computing power mortgage loans", and enrich ecological scenarios.
