Crypto’s yield gap with TradFi narrows as staking, RWAs surge

💡 DMK Insight

Stablecoins and staking tokens are gaining traction as yield generators, especially after the US GENIUS Act’s approval. This legislation is a game-changer, opening doors for institutional investment and providing a regulatory framework that could stabilize the market. Traders should keep an eye on how these developments affect liquidity and yield spreads, particularly in the stablecoin market. If yields on stablecoins rise significantly, we might see a shift in capital flows from traditional assets to crypto, impacting everything from Bitcoin to altcoins. But here’s the flip side: while the GENIUS Act is a positive step, it also invites scrutiny and potential regulatory hurdles down the line. Traders should monitor how major players react and whether any new compliance requirements could dampen enthusiasm. Watch for key price levels in stablecoins and staking tokens, as a breakout could signal a broader market rally or a correction depending on the sentiment.