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Changes in the market value of stablecoins often reflect the market’s interest in cryptocurrencies. During bear markets, a lot of liquidity returns to stablecoins. In the last round of bear market, USDT stood out and became the overlord. @SBF_FTX believes that Binance’s conversion of USDC to BUSD marked the beginning of the second stablecoin war.
Today's #Datacheck Dr. DODO continues to talk about stablecoins.
Review:
We talked about the classification of stablecoins and the current market capitalization ranking last week. Today, we mainly discuss stablecoins from the perspective of yield, public chain ranking and protocols.
Last issue: https://mobile.twitter.com/DodoResearch/status/1581885965920268289
Market Cap:
According to data from DeFilama, the total market value of stablecoins is currently around $146.34B. As the supply of BUSD surged, it exceeded $20B for the first time this month, accounting for about 15% of the entire stablecoin market, a record high. The head effect of the stablecoin market share is obvious. It can be seen that the market value of Frax, which ranks fifth, is less than 2% of that of USDT, the first.
Public chain share:
Most of the USDT supply is on the Ethereum and Tron blockchains, with nearly 33B tokens issued on each network, down from the bull run. At present, the share of USDC on Ethereum has surpassed USDT to become the largest stablecoin, which seems to reflect the continuation of the stablecoin ecological revolution of Ethereum.
USDT distribution:
On Ethereum, the top 34 addresses belong to exchanges and DeFi protocols; they account for around 40% of the total supply. The top 100 addresses account for nearly 50% of the supply.
Lower yield:
In the absence of revenue-generating opportunities in the crypto space, even some of DeFi's biggest proponents are turning to more sedate alternatives. For example, MakerDAO, which operates the fourth-largest stable currency DAI, announced that it has begun to buy US Treasuries and corporate bonds of $500M. And it’s hard to say that it’s not due to the yields that DeFi protocols provide for stablecoins that are inferior to U.S. Treasuries. At present, the APY of stablecoin pledge is basically around 1.2%, and rarely exceeds 2%. The U.S. one-year Treasury bond yield reached 4.59%. This should also be a major reason for the decline in the total market value of stablecoins.
Protocol TVL:
From the TVL point of view, Curve is undoubtedly the largest stablecoin liquidity pool on Ethereum. The two largest pools are 3crv (DAI-USDC-USDT) and FraxBP (FRAX-USDC). This also means that DAI, USDC, USDT and FRAX are dividing up the stable currency market of Ethereum, and the future overlord will most likely emerge from them.
Future:
It was recently reported that Tether USDT will be available at 24,000 ATMs in Brazil starting November 3. While this benefits USDT’s widespread adoption, it also further reduces its censorship resistance. Centralization is the main reason for the decline in the DeFi market’s preference for USDT. DAI and USDC also show the characteristics of centralization.
https://watcher.guru/news/tether-usdt-will-be-made-available-across-24000-atms-in-brazil
Frax's stablecoin model has proven to remain resilient by maintaining its peg (+/- $0.01 of the $1 peg target) and has been tested many times since its inception in December 2020. We are also looking forward to the new sparks brought by DeFi-native stablecoins such as GHO and crvUSD.
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https://twitter.com/rektdiomedes/status/1583210231701852160?utm_source=substack&utm_medium=email