Crypto Stablecoin Report 14: The increase of Ethereum Gas Fee makes the transfers of stablecoin transactions on the blockchain

MYKEY

Published in

MYKEY Lab

8 min readAug 19, 2020

Original link: https://bihu.com/article/1181625280

Original publish time: August 18, 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.

Quick Preview

Last week, the market capitalization of major stablecoins increased by $815 million to $15.202 billion.
Last week, Tether has additionally issued USDT twice on Ethereum, totaling 620 million.
On August 13, Ethereum set a record for an average gas fee of $7.12 per transaction.
Starting from the end of April, the proportion of the circulation of TRC20 USDT is increasing and now TRC20 USDT has accounted for 30.6% of the total USDT.
Beginning in June, the proportion of the number of transactions of stablecoins on Ethereum has continued to decrease. At present, the number of transactions of stablecoins on Ethereum accounts for 20.73% of the total transactions on Ethereum. The increase of gas fees on Ethereum has shifted the transactions of stablecoins to other places.

1. Overview of Stablecoin Data

First, let’s review the changes in the basic information of the various stablecoins in the past week(August 8, 2020 ~ August 14, 2020, same below).

Market Circulation

Source: MYKEY, CoinMarketCap, Coin Metrics

At present, the market circulation of major stablecoins has increased by $815 million to $15.202 billion.

Source: MYKEY, Coin Metrics

Last week, Tether has additionally issued twice on Ethereum, totaling 620 million USDT. The circulation of USDC, BUSD, TUSD, and DAI increased by 94.81 million, 27.21 million, 49.1 million, and 32.83 million. TUSD and BUSD have a higher proportion of additional issuance. The circulation of PAX, HUSD, and GUSD decreased by 3.92 million, 2.87 million, and 2.3 million.

The Number of Holding Addresses

Source: MYKEY, DeBank

Last week, the number of main stablecoin holding addresses on Ethereum all increased and increased by 153,078.

Source: MYKEY, DeBank

The number of holding addresses of USDT, USDC, PAX, TUSD, and DAI increased by 139,838, 7,309, 481, 822, and 4,628.

The Number of Active Addresses

Source: MYKEY, Coin Metrics

The number of active addresses of stablecoins last week decreased by an average of 6.43% 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 3.26%.

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 increased by an average of 4.74%.

2. The impact of Ethereum Gas Fee on the use of stablecoins

With the prosperity of the Ethereum ecosystem, TPS has become an important factor restricting the development of Ethereum. Transactions on Ethereum are gradually becoming congested, and gas fees are getting higher and higher. The high gas fee excludes users with low net worth. As an important type of asset on Ethereum, stablecoins may be affected by gas fees. According to data from DeBank, the current total market capitalization of stablecoins on Ethereum is $10.047 billion, which is 20.66% of the market capitalization on Ethereum. In this report, we will explore the impact of Ethereum gas fee on the use of stablecoins.

According to data from messari.io, since April this year, Ethereum miner fees have increasing. Beginning in June, Ethereum miner fees surpassed Bitcoin miner fees, setting a record for an average gas fee of $7.12 per transaction on August 13. The green line in the figure below represents Ethereum miner fee, and the white line represents Bitcoin miner fees.

Source: messari.io

Since the end of April, Tether may have been aware of the increase of gas fees on Ethereum, and began to issue a large number of USDT on Tron. The proportion of the circulation of TRC20 USDT is increasing and now TRC20 USDT has accounted for 30.6% of the total USDT, and Omni USDT and ERC20 USDT account for 10.5% and 58.9%.

Source: MYKEY, Coin Metrics

The same situation has also occurred in the number of transactions. Since June this year, the proportion of TRC20 USDT in the number of transactions of USDT has also increasing, and has now increased to 35.9%. At the beginning of the year, the number of transactions of TRC20 USDT accounts for 5.34% of the number of transactions of ERC20 USDT, and now this proportion has increased to 58.04%.

Source: MYKEY, Coin Metrics

Before June this year, there was a general upward trend in the number of transactions of stablecoins on Ethereum. After June, the proportion of stablecoin transactions gradually decreased. Now, the sum of the number of transactions of the major stablecoins accounts for 20.73% of the number of transactions on Ethereum. This may be due to the rising gas fees on Ethereum and the popularity of TRC20 USDT. It can be seen that the increase of gas fees on Ethereum has shifted the transactions of stablecoins to other places.

Source: MYKEY, Coin Metrics

At present, the number of transactions of ERC20 USDT accounts for 83.8% of the number of transactions of stablecoin on Ethereum, and the transactions of stablecoins on the blockchain are still mainly based on USDT. The ERC20 USDT held by the top ten addresses accounted for only 14.09% of the total ERC20 USDT. More than a month ago, the ERC20 USDT held by the top ten addresses accounted for 22.49%. ERC20 USDT holdings are becoming more and more scattered.

Among the ten addresses holding the most TRC20 USDT, 7 are marked as Exchanges, the other is the official Tether address, and two are anonymous. Among them, the address in the fourth place on the rich list has had large transactions with Huobi. 93.15% of the total TRC20 USDT are held by the top ten addresses on the rich list. Binance occupies three of the top ten on the rich list, and 55.46% of the total TRC20 USDT are held by these three addresses. TRC20 USDT is largely concentrated on centralized Exchanges.

Source: MYKEY, Tether, Tokenview

While the transactions of stablecoins on the blockchain are gradually turning to Tron, the DeFi Dapps on Tron may also become better. We selected seven representative DeFi Dapps: 200TRON, Bank of TRON, TronTrade, Poloni DEX, Forsagetron Smartway, Zethyr Finance, and Oikos cash to judge the development of DeFi on Tron. In the past 10 days, the number of daily transactions on 200TRON increased from 0 to 112,600. In the past month, the number of daily transactions of Bank of TRON increased by 283% to 205,400, and the number of transactions of Zethyr Finance increased by 116%. Only TronTrade and Oikos cash have little change in the number of daily transactions, while the number of daily transactions in the other 5 Dapps has increased significantly. It can be seen that many DeFi Dapps on Tron have also made great progress recently.

Source: MYKEY, DappReview

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