The Stablecoin Market Is Crowded. Can MetaMask Break Through?

While the crypto market is going through turbulence, many are anticipating the launch of a new stablecoin. According to CoinDesk, MetaMask is planning to release its own stablecoin later this month.

We already have plenty of stablecoins out there. I honestly can’t imagine what could convince users to adopt yet another new one. It seems MetaMask is aiming to attract interest through passive income.

The difference is, unlike Ethena - which channels a share of its own trading profits into its sUSDe stablecoin - MetaMask doesn’t actively operate in the crypto markets. With MetaMask’s coin, any earnings would only come if users themselves put it into yield-generating programs. Sure, the wallet’s developers will likely make that as easy as possible, but still:

• first, that’s not truly passive income
• second, you can already do the exact same thing with many other stablecoins in DeFi protocols.

That’s why I think it will be tough for MetaMask’s stablecoin to carve out its own niche. What the market really seems to want right now is a stablecoin that can fully replace its corresponding fiat currency (including for payments) while avoiding fiat’s downsides - especially the heavy-handed banking control over transactions.

If a stablecoin could pull that off, it would be a real breakthrough. Anything else will just be another stablecoin in the pile.

In the meantime, a quick reminder: you can exchange any popular stablecoin anytime on rabbit.io - no registration, no limits.