The yield on USDC on a major compliant platform has recently dropped to 3.5%, and there seems to be room for it to go even lower. The main reason is quite clear—the Fed's rate cut expectations are becoming more definite, which directly suppresses the overall ceiling for stablecoin yields.

Wait, let's think about this again. The arrival of a rate cut cycle means market liquidity will be abundant, borrowing costs will naturally decrease, and the yield on stablecoins will be squeezed accordingly—that's an inevitable logic. Those high-yield days were actually a product of high interest rates—now that the interest rate cycle is reversing, this adjustment was bound to happen sooner or later.

For those holding stablecoins, this signal is actually quite important. If you're still relying solely on USDC yields to make a living, it will become increasingly difficult.