Research Summary
This report provides a comprehensive analysis of various stablecoins, including Tron, USDT, crvUSD, DAI, GHO, and their performance in the crypto market. It covers aspects such as stablecoin volume, transaction size, supply, revenue generation, and market cap. The report also highlights the role of these stablecoins in the DeFi landscape and their potential for growth.
Key Takeaways
Stablecoin Volume and Dominance
- Tron Surpasses Ethereum: In August, Tron’s single directional stablecoin volume surpassed Ethereum’s, reaching $590B compared to Ethereum’s $478B. This indicates a shift in the stablecoin market dynamics.
- Tether Remains Dominant: Tether (USDT) continues to dominate the stablecoin market with $822B in single directional volume in August, followed by USDC with $292B, and DAI at a distant third with $23B.
- Stablecoin Usage: The data suggests a smaller average transaction size on USDT versus USDC, reflecting the different regions each stablecoin serves.
Stablecoin Supply and Revenue Generation
- crvUSD Supply and Revenue: Since its launch in May 2023, crvUSD has maintained a steady supply of ~$115M. It has become a significant source of revenue for Curve Finance, accounting for 25.6% of Curve DAO’s total revenue.
- DAI Supply Reversal: After a period of decline, DAI supply has grown to ~5.5B, coinciding with the change to the Enhanced DAI Savings Rate (ESDR).
- GHO Stablecoin Supply: The GHO stablecoin, pegged to the US dollar, has seen an uptick in its supply, reaching a peak of over 23M at the end of August.
Stablecoin Market Cap and Adoption
- Tether’s Market Cap: Despite a challenging year for crypto, USDT has thrived with a market cap of $83.28B, up 22% in the last year, representing 66% of the stablecoin market share.
- USDT Adoption: The number of wallets holding USDT on Tron and Ethereum has significantly increased, indicating growing adoption. Approximately 45B USDT is held by leading CEXs, and over 40B USDT sits on non-crypto platforms, suggesting mass market adoption.
Actionable Insights
- Investigate the Potential of Tron: With Tron surpassing Ethereum in stablecoin volume, it may be worth exploring the potential of Tron in the stablecoin market.
- Monitor Stablecoin Supply Trends: The reversal in DAI supply and the steady supply of crvUSD highlight the importance of monitoring supply trends in the stablecoin market.
- Consider the Impact of Stablecoin Adoption: The increasing adoption of USDT, particularly on non-crypto platforms, underscores the potential impact of stablecoin adoption on the broader financial landscape.
