STBL, a new stablecoin protocol founded by Tether co-founder Reeve Collins, has made a dramatic debut on Binance Alpha and Kraken.

Within 24 hours of its debut, the token soared 455.5%, far outpacing the broader cryptocurrency market’s modest 0.65% gain.

STBL’s price performance has been nothing short of extraordinary.

After setting an all-time low of $0.02689 on September 16, the token staged an explosive rally that pushed it to an intraday high of $0.2293 the following day.

At press time, STBL was trading at around $0.1631, with a market capitalisation of about $81.6 million and a fully diluted valuation topping $1.6 billion.

Trading volume has also surged, climbing over 21,000% in a single day to more than $513 million.

This produced a turnover ratio of 6.46, a signal of intense liquidity rarely seen in early-stage tokens.

Such dynamics have attracted momentum traders and algorithmic funds, fueling speculation about whether the project can sustain its early gains.

Unlike earlier stablecoin models, where issuers captured most of the profits, STBL aims to distribute both governance and returns back to its community.

The STBL protocol’s design revolves around its stablecoin, USST, which is backed by collateral provided by users.

Holders of STBL tokens will eventually be able to vote on collateral types and protocol upgrades, a shift that analysts say could turn passive users into active participants.

The mechanism that has generated the most excitement is STBL’s ability to split yield from spendable stablecoins.

By minting yield-bearing NFTs, known as YLD, the project allows investors to keep their yield rights while still deploying USST in the broader market.

A viral social media thread dissecting this model earlier this week drew widespread attention, partly due to Collins’ credibility as a Tether co-founder.

The timing of the surge is also tied to STBL’s mainnet launch, which gave traders and early backers a clear signal that the protocol was ready for real-world use.

The exchange listings on Kraken and Binance Alpha have further enhanced liquidity, creating a feedback loop of rising visibility and speculative inflows.

But still, the STBL rally is not without risk.

At the moment, only 500 million STBL are in circulation, representing just 5% of the token’s total supply.

Investors remain wary of what might happen once additional tokens are unlocked and released into the market.

Notably, inflationary pressure from supply expansions has historically been a stumbling block for young protocols, particularly when early hype outpaces fundamental adoption.

Backed by Wave Digital Assets, which manages over $1 billion in digital assets, STBL enters a crowded field at a time when stablecoins and tokenised assets are rapidly reshaping finance.

Tokenised US Treasuries alone surpassed $23 billion in value locked earlier this year, underlining the growing demand for blockchain-based access to traditional yield-bearing instruments.

For Collins, who played a central role in the creation of the world’s largest stablecoin, the challenge now lies in translating hype into sustainable growth.

The coming weeks will reveal whether STBL can hold above its recent all-time high of $0.2293 or whether profit-taking will drag it lower.

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