Forget Bitcoin (Cryptography: BTC). Forget the speculative meme coins. And forget about the dangerous altcoins. When many cryptocurrencies are losing their value, the single best crypto investment opportunity for 2025 can turn out to be stable.
That might be surprising given that the stubcoin is designed to be stable. They are always traded for $1, so you won’t become a crypto billionaire by investing directly in them. But there are a number of ways to indirectly invest in them, and that’s where things get interesting.
The easiest way to think about Stablecoins is that they are digital dollars. That’s because they are usually pegged one-to-one in US dollars, fully backed by cash and cash equivalents. You can always exchange digital dollars for real dollars. Looking at the long-term price charts for stable coins such as USDC (Cryptography: USDC)its prices always vibrate around the $1 mark, with slight changes reflecting the adjustments in supply and demand.
Currently, the Stablecoin industry is experiencing rapid growth. Over the past 12 months, Stablecoins have grown 47% to a $200 billion industry. 21 shares – Investment companies affiliated with ARK have invested in new spot Bitcoin exchange sales funds (ETFs), but have recently been called “the true power of Crypto.”
Simply put, Stablecoins are the gateway for large institutional investors to engage in Diversified Finance (DEFI). This explains why many well-known companies, including PayPal and Ripple (the company behind the XRP tokens), launched Stablecoins. And World Liberty Financial, a crypto company belonging to the Trump family, recently announced plans to launch its own Stablecoin.
At this point, the answer is simple: “Okay, that’s great. But how do I make money from digital assets that are always traded for a dollar?” You invest in the Stablecoin issuer, not the Stablecoin itself.
Image source: Getty Images.
This is possible as Circle Internet Group, publisher of USDC Stablecoin, released on April 1, is aiming to value between $400 million and $5 billion, and could come soon when an initial public offering (IPO) comes in June, according to sources cited by CNBC. Currently, USDC accounts for approximately 30% of the Stablecoin market’s market capitalization, making it the second largest Stablecoin in the world.
If a Circle IPO occurs, it will be the largest Crypto IPO since Coinbase Global (NASDAQ: Coin)It was published in 2021 with a valuation of nearly $100 billion. Circles expected to be traded under the ticker symbol CRCL will become one of the best pure play crypto stocks to join the ranks of Coinbase and Strategy. (NASDAQ:MSTR).
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But let’s say the circle IPO doesn’t happen as planned this year. After all, traditional wisdom is that trying to launch a flashy new IPO amid global economic uncertainty is a recipe for disaster. Therefore, there is a good chance that this IPO will be delayed.
But there’s no need to worry. There are other ways to make money from stubcoins this year. Another idea might be to invest in Coinbase. Coinbase has close business ties with Circle.
In 2023, Coinbase acquired Circle’s shares and entered into a revenue sharing agreement related to USDC Stablecoin, making it the company’s cash cow. Coinbase CEO Brian Armstrong recently proposed that USDC is pushing to become the number one Stablecoin in the world.
Additionally, some cryptocurrencies such as XRP have their own companion stub coins. These ciphers are worth looking into detail as stubcoin activity correlates with overall blockchain activity.
Now one cryptocurrency on my radar is Ecena (Code: Ena)There is a companion stubcoin called Esena Usde. This Stablecoin is currently being used as a “synthetic dollar” to generate triple-digit yields for institutional investors. Because of its unique financial alchemy, Esena Usde becomes the world’s third largest stubcoin, with a market capitalization of $5 billion. This wars the size of the new PayPal Stablecoin with a market capitalization of $837 million.
Stubcoins are so stable it’s easy to think of them as boring. But there’s a big business behind them, and there’s a lot of financial innovation going on behind the scenes. Above all, the next big crypto law expected to be signed by President Donald Trump soon posts rules for the Stable Coin Road, giving it even more legitimacy with Wall Street and global financial institutions.
So instead of trying to chase performance from risky speculative assets, you give yourself a favor and invest in the most boring and most stable crypto business possible. At times when economic uncertainty is critical, stubcoins can become defensive play with amazing amounts of benefits.
Consider this before purchasing stocks at USDC.
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Dominic Basulto has Bitcoin and USDC positions. Motley Fool has jobs at Bitcoin and Coinbase Global. Motley Fools have a disclosure policy.
Prediction: This will be the best cryptocurrency investment of 2025.
