Writing reports for
@arbitrum, topping the
@KaitoAI leaderboard, and being part of the community was a highlight of my time at
@MessariCrypto.
One of my takes I wrote about in the Messari Crypto Theses 2025 is playing out.
@Arbitrum now has a native stablecoin, in partnership with
@global_dollar.
As $USDG supply on Arbitrum One scales, an (undisclosed) portion of interest generated by the underlying treasuries will flow to the ArbitrumDAO treasury.
As I expected, Season 2 of the DeFi Renaissance Incentive Program (DRIP) will focus on driving the stablecoin's growth.
Two days after launch, USDG supply is $26.2M, accounting for 0.6% of Arbitrum One’s total stablecoin market cap.
Assuming growth to $426M, 10% of the current total, and a 3.5% APY, ArbitrumDAO would generate $14.9M in annual revenue.
That is just over the $391.5M in $PYUSD on the network, and about half of the $812M in $USDT0. Those numbers show that scale is feasible, but I don't expect $USDG to reach it quickly.
DRIP Season 2 should push supply toward $100M, and likely past it if backroom liquidity deals are in play, but growing into the hundreds of millions will be a challenge.
I wouldn't expect that level of scale until 2027. Nonetheless, Arbitrum’s economic engine keeps churning.