TL;DR:
- Phantom’s CASH Stablecoin reached $100 million in supply just two months after its debut in September.
- The exponential growth was driven by the fee-free “Cash Account,” bank on-ramp, and DeFi incentives on Solana.
- CASH contrasts with MetaMask’s mUSD stablecoin, whose supply dropped after its short-term liquidity programs ended.
Recently, the native stablecoin of the Web3 self-custody wallet Phantom, Cash (CASH), surpassed the impressive $100 million mark in supply, according to data provided by Artemis. The stablecoin’s achievement comes just two months after its official launch on September 30th, indicating a notably faster adoption acceleration than its competitors.
The asset’s growth is attributed to a smart product design that facilitates access to fiat capital, coupled with strong on-chain incentives. In a strategic move mid-November, Phantom introduced a fee-free “Cash Account” that allows instant bank funding, peer-to-peer transfers, and debit card integration, thanks to the stablecoin’s issuer, Bridge, and Stripe. These integrations have been fundamental in facilitating the entry and exit of liquidity.
Drivers of Parabolic Growth and the Contrast with MetaMask
Demand for the Phantom CASH Stablecoin has been further strengthened by protocol-level incentives, particularly in the Solana ecosystem. For example, Kamino, one of the largest liquidity providers on Solana, partnered with Phantom in early October to launch the “CASH Growth Initiative,” offering weekly and monthly KMNO rewards for lending and borrowing using CASH.
These combined stimuli resulted in a parabolic growth in the number of CASH transactions, which spiked to almost 162,000 on November 25th. In contrast, MetaMask’s stablecoin, MetaMask USD (mUSD), also briefly surpassed $100 million in supply in early October. However, its circulating supply has dropped drastically to around $25 million.
MetaMask’s Senior Director of Product, Johann Bornman, explained that this drop occurred after their own “short-term liquidity programs” ended. He noted that the team is focused more on building utility for mUSD within the wallet than on short-term supply, highlighting the differences in product development cycles.
The success of the Phantom CASH Stablecoin underscores the critical importance of user experience and DeFi incentives for the massive adoption of digital assets. The rapid expansion in the supply and usage of CASH positions Phantom as a key player in the next-generation stablecoin infrastructure.
In summary, this Phantom CASH Stablecoin phenomenon demonstrates that the combination of frictionless fiat on-ramps and deep on-chain integrations is the winning formula in the Web3 wallet wars.
