MegaETH’s USDm Supply Plunges More Than 95% From May Peak

The supply of MegaETH’s USDm stablecoin has experienced a significant contraction, falling to approximately $18 million from its May peak of $600 million. This represents a decline of more than 95%, which Castle Labs attributes to reduced activity on the MegaETH network. USDm was designed to generate yield by deploying reserves into BlackRock’s BUIDL fund, with the resulting returns used to facilitate MEGA token buybacks and burns. With the current supply at $18 million, the annual yield generation is estimated at roughly $650,000 based on a 3.6% Secured Overnight Financing Rate. The shrinking asset base directly impacts the protocol's ability to sustain its buyback and burn mechanism. This development highlights the sensitivity of RWA-backed stablecoin models to underlying network usage and liquidity fluctuations. The integration of institutional products like BUIDL into decentralized protocols remains a key area of focus for RWA market participants monitoring yield sustainability.