Crypto Stablecoin Report 15: The market capitalization of stablecoins increased to $15.961 billion, On-chain usage of stablecoins
Original link: https://bihu.com/article/1229222499
Original publish time: August 25, 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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- Last week, the market capitalization of major stablecoins increased by $759 million to $15.961 billion.
- Tether migrated 1 billion USDT from Tron to Ethereum and additionally issued 120 million USDT on Ethereum, and additionally issued 400 million USDT on Tron twice.
- On the evening of August 23, the gas fee cost in USDT transfer within 24 hours accounted for 10.73% of the gas fee on Ethereum.
- The deposits in Curve include 333 million USDC, 307 million USDT, 236 million TUSD, 70.7 million DAI, 23.39 million sUSD, 290,000 BUSD, and 220,000 PAX(Including cToken and yToken).
- The loan balance of DAI in Compound is 217 million, accounting for 49.2% of the DAI supply.
- USDT has a higher volume/liquidity in Uniswap.
1. Overview of Stablecoin Data
First, let’s review the changes in the basic information of the various stablecoins in the past week(August 15, 2020 ~ August 21, 2020, same below).
Market Circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
At present, the market circulation of major stablecoins has increased by $759 million to $15.961 billion.
Source: MYKEY, Coin Metrics
In the past week, Tether migrated 1 billion USDT from Tron to Ethereum and additionally issued 120 million USDT on Ethereum and additionally issued 400 million USDT on Tron twice. The circulation of USDC, PAX, BUSD, TUSD, DAI, and GUSD increased by 134 million, 2.59 million, 4.34 million, 79.99 million, 19.87 million, and 140,000, and the circulation of HUSD decreased by 1.28 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 90, 657.
Source: MYKEY, DeBank
The number of holding addresses of USDT, TUSD, and DAI increased by 90,845, 504, and 1,695. The number of holding addresses of USDC and PAX decreased by 2,375 and 12.
The Number of Active Addresses
Source: MYKEY, Coin Metrics
The number of active addresses of stablecoins last week increased by an average of 1.64% 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 decreased by an average of 4.15%.
The Number of 24-hour Volume of Transactions on the Public Blockchains
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
Due to the large amount of transfers on the blockchain caused by the USDT migration, the daily volume of transactions of major stablecoins last week increased by an average of 19.67% from the previous week.
2. On-chain usage of stablecoins
Stablecoins have become a very important infrastructure, especially for public blockchains that are ready to develop DeFi, almost essential. The more complete ecological public blockchains Ethereum, EOS, TRON, not only have introduced USDT issued by Tether but also have their on-chain collateralized stablecoins DAI, EOSDT, USDJ. For Ethereum, stablecoins are an important asset, providing a foundation for the ecology on Ethereum. But at the same time, stablecoins also bring some bad effects, such as on-chain congestion and skyrocketing fees. In this report, we will introduce you to the on-chain usage of stablecoins on Ethereum.
To maintain the security of the network and allow miners to package transactions, each transaction on Ethereum needs to pay a certain gas fee, and the gas fee can most intuitively reflect the use of each contract on the blockchain. According to Etherscan data on August 23, Uniswap V2: Router2, which uses the most Gas fee, is routing on Uniswap. The Transaction Account ‘0x7a250d5630b4cf539739df2c5dacb4c659f2488d’ that we often see on Uniswap corresponds to the contract. In Uniswap, any two ERC20 tokens can be exchanged, which is the credit of the routing. There are still many transactions that do not require routing because of direct exchange, so it can be confirmed that Uniswap is a Dapp that costs more gas fees on Ethereum.
Source: ethereoscan.io
The second-largest cost of the gas fee is USDT. In the past 24 hours, the gas fee cost accounted for 10.73% of the Ethereum, with a total cost of 780.69ETH, totaling $305,800. Among the top 50 fees, there are USDC and DAI, which account for 0.47% and 0.22% of the gas fee on Ethereum. Only the transfer of USDT, USDC, and DAI accounted for 11.42% of the gas fee on Ethereum.
Some contracts are highly related to stablecoins that also cost a lot of gas fees, such as Curve.fi: y Deposit, Maker: Proxy Registry. Uniswap, 1inch, Balancer, and other decentralized trading platforms will also use more stablecoins. It can be predicted that transactions related to stablecoins cost a relatively high proportion of gas fees on Ethereum.
The total lock-up volume is an important indicator when measuring the scale of DeFi projects. A large part of the lock-up volume in Aave, Curve, and Compound comes from stablecoins.
Aave is an open-source decentralized lending protocol. Although many kinds of assets can be deposited and withdrawn in Aave, the main deposit /lending of users is still stablecoin. Currently, deposits in Aave include 267 million USDT, 250 million USDC, 240 million TUSD, and 39.53 million DAI. There are more deposits in USDT, USDC, and TUSD, but DAI is more capital efficient. USDT, USDC, and TUSD have more deposits, but the capital utilization rate of DAI is higher.
Source: apps.aave.com
Curve is a protocol based on automatic market makers and specifically designed for stablecoin and stablecoin swap. Curve also integrates the cToken of Compound and yToken of yearn. Compound and yearn depositors can not only get the loan interest in their respective platforms but also earn transaction fees in Curve. As of August 23, a total of 1.139 billion dollars of assets have been deposited in Curve including 333 million USDC, 307 million USDT, 236 million TUSD, 70.7 million DAI, 23.39 million sUSD, 290,000 BUSD, and 220,000 PAX. Also, there are 70.19 million renBTC and 68.98 million WBTC.
Source: curve.fi
As of August 24, the total deposits in Compound were $1.746 billion, which is still the DeFi project with the most deposits. Deposits in Compound include $1.024 billion DAI, $201 million USDC, and $25.55 million USDT. The concept of collateral factor is introduced in Compound. The collateral factor is the ratio of assets that can be borrowed against deposits, and the collateral factor of USDT is 0. Since Compound does not fully support USDT, USDT deposits are less. The application of DAI in Compound is better. The loan balance of DAI in Compound is 217 million, accounting for 49.2% of the DAI supply.
Source: compound.finance
Among the top 6 tokens with the best liquidity in Uniswap, USDC, USDT, DAI, and sUSD are all relatively common stablecoins. Among them, USDC has the best liquidity, but USDT has a higher volume/liquidity in Uniswap, and it is easier to get higher transaction fees for depositing USDT. For example, in the exchange pairs with ETH, the liquidity of USDC-ETH, USDT-ETH, and DAI-ETH are $22.36 million, $16.01 million, and $13.12 million. However, due to the higher volume of transactions of USDT-ETH, their fees in the past 24 hours were $27,850, $38,648, and $25,227.
Source: uniswap.info
3. Questions of Readers
1. Why is USDT not included in the cryptocurrency whitelist announced by NYDFS?
Answer: USDT, USDC, and DAI are not on the list of cryptocurrency whitelists announced by NYDFS, but PAX, BUSD, and GUSD are on the list. I think this is because of compliance issues. GUSD and PAX passed the approval of NYDFS in the first batch, and it is not surprising that they can pass the whitelist of NYDFS this time. BUSD is a stablecoin launched by Binance and Paxos, and it has also been approved by NYDFS.
USDC was developed by Centre Consortium, a company jointly invested and operated by Coinbase and Circle. It complies with the supervision of the ‘MTM’ and can be used as a currency transfer agency in the United States, but it has not obtained a clear regulatory license from NYDFS.
Although USDT is large in scale, it has the worst compliance and does not even issue monthly audit reports like other stablecoins. Last year, the New York Department of Justice also accused Bitfinex of illegally embezzling $850 million in Tether to make up for losses. Therefore, USDT is the most difficult to comply with the commonly used off-chain collateralized stablecoins.
On the other hand, DAI is entirely dependent on on-chain collateral generation without the participation of centralized institutions and has the characteristics of anti-censorship, and there is uncertainty for supervision.
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 03: Where are the users of DAI?
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)
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