In the ever-evolving world of cryptocurrency, stablecoins continue to play a pivotal role, especially for those diving into meme tokens where volatility is the name of the game. Recently, Sam Kazemian, the founder of Frax Finance, chimed in on a fascinating discussion sparked by Token Terminal about the massive growth in tokenized assets.

Token Terminal highlighted that the assets under management (AUM) for tokenized assets have hit an all-time high of around $270 billion. They broke it down simply: the biggest players are USD stablecoins without yield and those with yield. And they teased another "flippening" on the horizon—where yield-bearing stablecoins might overtake the non-yield ones.

Sam Kazemian, known for his work on FRAX, a fractional-algorithmic stablecoin, responded by saying this perspective really nails how huge the total addressable market (TAM) for stablecoins could be. He pointed out the key challenge: bridging the gap between USD that's fully legal for everyday uses like payments, cards, and lending, and a system that offers rewards or distributions—all wrapped up in one liquid token. Whoever cracks that code, he says, will dominate the space.

For meme token enthusiasts, this matters because stablecoins like USDT or USDC are often the on-ramp and safe haven during wild market swings. Imagine if these stablecoins started offering yield—essentially earning interest while holding—without sacrificing liquidity. It could provide a more stable base for trading memes on chains like Solana or Ethereum, where many viral tokens launch.

Frax Finance itself is pushing boundaries with yield-bearing features in some of its products, making it a project to watch. As blockchain practitioners, keeping an eye on these developments can help you navigate the meme landscape smarter, turning hype into informed strategies.

What do you think—will yield-bearing stablecoins flip the script? Check out the original thread on X for more details.