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Crypto Stablecoin Report 13: The market capitalization of stablecoins reached $14.387 billion, Stablecoin pool Reserve

Original link: https://bihu.com/article/1559677956

Original publish time: August 11, 2020

Original author: HaiBo Jiang, researcher of MYKEY Lab

We released MYKEY Crypto Stablecoin Report to share our interpretation of the development status of stablecoins and analysis of their development trends to help the participants in the crypto market stay updated on the development status of stablecoin. The MYKEY Crypto Stablecoin Report will be published every week, looking forward to maintaining communication with the industry and exploring the development prospects of stablecoin together.

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  • At present, the market capitalization of major stablecoins has reached $14.387 billion, an increase of $980 million compared with last week.
  • Last week, USDT was additionally issued 6 times and the circulation increased by 930 million. Among them, four additional issuances occurred on Ethereum, totaling 480 million USDT and two additional issuances occurred on Tron, totaling 450 million USDT. The circulation of USDT has grown rapidly.
  • The circulation of USDC increased by 23.99 million to 1.107 billion.
  • The circulation of DAI increased by 7.57% compared with a week ago, a decrease in growth rate.
  • Reserve is a flexible stablecoin pool that reduces the risk of stablecoins through asset diversity and decentralized governance.

1. Overview of Stablecoin Data

First, let’s review the changes in the basic information of the various stablecoins in the past week(August 1, 2020, ~ August 7, 2020, same below).

Market Circulation

Source: MYKEY, CoinMarketCap, Coin Metrics

At present, the market capitalization of major stablecoins has reached $14.387 billion, an increase of $980 million compared with last week.

Source: MYKEY, Coin Metrics

Last week, USDT was additionally issued 6 times and the circulation increased by 930 million. Among them, four additional issuances occurred on Ethereum, totaling 480 million USDT and two additional issuances occurred on Tron, totaling 450 million USDT. The circulation of USDC, PAX, BUSD, HUSD, DAI, and GUSD increased by 23.99 million, 8.09 million, 6.31 million, 3.91 million, 8.99 million, and 840,000. The circulation of TUSD decreased by 2.39 million.
The circulation of DAI increased by 7.57% compared with a week ago, a decrease in growth rate.

The Number of Holding Addresses

Source: MYKEY, DeBank

Last week, the number of main stablecoin holding addresses on Ethereum all increased and increased by 52,792.

Source: MYKEY, DeBank

The number of holding addresses of USDT, USDC, PAX, TUSD, and DAI increased by 38,624, 7,331, 269, 885, and 5,683.

The Number of Active Addresses

Source: MYKEY, Coin Metrics

The number of active addresses of stablecoins last week increased by an average of 9.65% compared to the previous week.

The Number of 24-hour Transactions on the Public Blockchains

Source: MYKEY, Coin Metrics

Compared with the previous week, the number of daily transactions of major stablecoins increased by an average of 13%.

The Number of 24-hour Volume of Transactions on the Public Blockchains

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Compared with the previous week, the daily volume of transactions of major stablecoins last week decreased an average of 2.2%. On July 27 of the previous week, the transfer amount of USDT on Ethereum was unusually high.

2. Reserve Protocol

Among the digital assets that Coinbase recently listed as possible to launch, Reserve Rights in the stablecoin project is included. Reserve Rights Token (RSR) is a token used to promote the stability of the Reserve Token (RSV) in the Reserve Protocol. At present, the application of stablecoin RSV is still relatively few. We will introduce the Reserve Protocol in this report.

Reserve is a flexible stablecoin pool that reduces the risk of stablecoins through asset diversity and decentralized governance. The collateral assets of Reserve include USDC, PAX, TUSD, etc. Under normal circumstances, the price of RSV will be automatically adjusted by the open market to around $1. When demand falls, for example, the price of RSV on the open market is $0.98 and the redemption price is $1, arbitrageurs will be incentivized to purchase RSV on the secondary market and redeem $1 worth of reserves, pushing up the price of RSV. When demand rises, if the price of RSV is $1.02, arbitrageurs will be incentivized to pledge $1 worth of assets to mint RSV and sell them in the market, reducing the price of RSV.

Although Reserve chooses a portfolio with less downside risk, the value of collateral tokens may still fall. When this happens, the Reserve Protocol will sell the newly minted RSR tokens to supplement the collateral assets.

In extreme cases, if the collateral assets depreciate and no market participant is willing to purchase the newly minted RSR at the lowest auction price of the RSR, the collateral assets of the RSV may theoretically be less than 100%. In this case, the Reserve Protocol will enlarge the price range set to protect RSV. Under normal circumstances, the RSV range is close to $1. In the event of a crisis, such as a 5% depreciation of collateral tokens, the price range of RSV may be adjusted to $0.95-$1.05. This means that in the short term, the redemption of RSV can only get $0.95 worth of collateral assets, while newly minted RSV requires $1.05 worth of collateral assets. In this way, runs can be prevented, and the last person to redeem the collateral assets gets the same ratio as the first person to redeem.

At present, there are few RSV holders, and the Reserve is not widely used, with holders able to purchase Amazon gift cards through the Reserve App. As the variety of collateral assets increases, the stability of RSV will be enhanced and applications will likely increase.

Tips

To better communicate with industry insiders, we decided to add two sections for questions of readers and opinions of guests. If readers have questions about stablecoins, please contact us. We will pick meaningful questions to answer in the next issue. At the same time, welcome guests from the industry to share your views on stablecoins. Contact information: jianghb@mykey.org.

This is what we’re sharing in this MYKEY Crypto Stablecoin Report, welcome to stay tuned for follow-up crypto stablecoin reports. We will provide more interpretations of the development status of stablecoins and analysis of their development trends to help you stay updated on the development status of stablecoin in the follow-up report.

PS: MYKEY Lab has the final right to interpret the content of the article, please indicate the source for the quotation. Welcome to follow our official account — MYKEY Lab: MYKEY Smart Wallet.

Past review

MYKEY Crypto Stablecoin Report 01: USDT continues to gain momentum as market capitalization exceeding $10 billion

MYKEY Crypto Stablecoin Report 02: USDT suspended additional issuance and the usage scenario of USDT in Tron is single

MYKEY Crypto Stablecoin Report 03: Where are the users of DAI?

Crypto Stablecoin Report 04: Tether additional issued 300 million USDT, commenting on various decentralized stablecoins

Crypto Stablecoin Report 05: DAI Maintains Steady Growth, Exploring Use of DAI by Users of Centralized Exchanges

Crypto Stablecoin Report 06: The latest 13 additional issuances of USDT all occurred on Tron, driving the increase use of Tron

Crypto Stablecoin Report 07: Security Analysis of Stablecoins

Crypto Stablecoin Report 08: Interpretation of Digital Dollar Project

Crypto Stablecoin Report 09: Analyze the lending leverage of Compound

Crypto Stablecoin Report 10: Introduce the Algorithmic Stablecoin Project Terra (Luna)

Crypto Stablecoin Report 11: The circulation of stablecoins has overall increased, Holding AMPL a month for 51 times incomes

Crypto Stablecoin Report 12: USDT is additionally issued 690 million The use of stablecoins outside the cryptocurrency market

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