$GHO and the Evolving Role of Stablecoins

Stablecoins are often seen as a safe harbour in crypto. Pegged to something steady like the US dollar, they hold their value even when the market is swinging wildly. This is why many traders move into them when they want to avoid volatility without fully cashing out to a bank account.

For years the usual play was simple. Keep funds in stables until the market drops, then buy in. But that approach is starting to feel outdated. Today, stablecoins can do more than just sit still. In some cases, they can quietly outperform the returns of tokens that traders chase daily.

Take $GHO as an example. Keeping it in a Bitget spot account can bring in about 10% APR automatically. Push your daily trading volume to around $500 and that figure can climb to 15%, still without any staking requirements or lock-ins.

The way issuers make this possible is straightforward. When you trade your dollars for a stablecoin, those dollars are held in reserves, often in low-risk assets like Treasury bills. These reserves generate interest, which covers operations and creates profit, while your coin stays pegged 1:1 to the dollar.

The point is not that stablecoins are better than dollars but that they offer flexibility. You can hold them, earn a steady return, trade instantly, or send funds globally within seconds. With options like $GHO’s yield program, a cautious strategy can still grow your capital in the background, leaving you better positioned when it is time to make your next move.

I like the potential here, but I am also aware that the current excitement might be more about narrative and timing than consistent performance. The idea is promising, yet it remains to be seen whether this is a lasting change or just another passing wave in the market.