The Supply of DAI Exceeded 1 billion, USDC was Used to Aid Venezuela
Original link: https://bihu.com/article/1898530070
Original publish time: December 2, 2020
Original author: Xiang Yao, 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, looking forward to maintaining communication with the industry and exploring the development prospects of stablecoin together, please feel free to leave suggestions.
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- The market capitalization of major stablecoins has increased by $2.540 billion to $25.25 billion, an increase of 14.1%.
- Last month, the circulation of USDT, USDC, DAI, and TUSD increased by 2.414 billion, 33 million, 124 million, and 52 million. The circulation of the remaining stablecoins decreased slightly.
- The circulation of DAI exceeded $1 billion, the circulation of USDC exceeded $3 billion.
- The stablecoin continues to outside the cryptocurrency market, and Circle used USDC to assist Venezuelan medical staff.
- Libra may be available as soon as January 2021.
1. Overview of Stablecoin Data
First, let’s review the changes in the basic information of the various stablecoins in the past month(November 1, 2020, ~ November 30, 2020, same below).
Market Circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
At present, the market capitalization of major stablecoins has increased by $2.540 billion to $25.25 billion.
Source: MYKEY, Coin Metrics
Among them, the main growth comes from Tether. Tether has additionally issued a total of 2.413 billion, specifically 1.313 billion on Ethereum and 1.100 billion on TRON. The circulation of USDC increased by $33 million, breaking through $3 billion on November 30. The circulation of TUSD increased by $52 million, and the circulation of DAI increased by $124 million, breaking through $1 billion, the circulation of PAX, BUSD, HUSD, and GUSD decreased by $26 million, $18 million, $36 million, and $1.41 million.
The Number of Active Addresses
Source: MYKEY, Coin Metrics
Last month, the average daily active addresses of major stablecoins increased by 3.73%.
The Number of 24-hour Transactions on the Public Blockchains
Source: MYKEY, Coin Metrics
Compared with the previous month, the number of daily transactions of major stablecoins increased by an average of 0.98%. Among them, the growth rate of USDC is remarkable, from an average of 33,400 daily transactions to 48,300, an increase of 44.7%.
The Number of 24-hour Volume of Transactions on the Public Blockchains
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
The daily volume of transactions of major stablecoins increased by $604 million, an increase of 13.97%. Harvest Finance was attacked and stolen $34 million, causing large fluctuations in on-chain transactions(the crest in the figure). Excluding the impact of data on the day, the increase can be revised to 37.97%.
2. Stablecoins are Booming
The entire stablecoin ecosystem is prospering and developing. The amount of funds has steadily increased, and DAI, the decentralized stablecoin has reached the milestone of $1 billion. Financial services are getting better and USDC, the compliant stablecoin plans to provide a deposit plan with the highest annualized return of 10.75%, benchmark products are about to come out, and Libra may be available as soon as January 2021.
The supply of DAI exceeds 1 billion
On November 13, 2020, the supply of DAI exceeded $1 billion, and only 71 days have passed since it exceeded $500 million. On the one hand, the rapid growth of data comes from the demand side, the demand for DAI continues to grow due to liquidity mining and rising market trends; on the other hand, it also comes from the supply side, the debt ceiling of ETH-A has been raised to $490 million. The USDC-A debt ceiling has also reached $485 million, and the utilization rate has exceeded 80%. USDC locked in the Maker Protocol has accounted for 13% of the total supply of USDC. In contrast, the contribution of newly-added collateral to the generation of DAI is limited. Since October, the total contribution of newly-added collateral assets COMP, LRC, LINK, BAL, YFI, GUSD to DAI is $26.30 million, accounting for 2.5% of the total, except for YFI, only 0.5%(Data source: https://daistats.com).
Circle announced a high-yield savings plan, up to 10.75%
On November 5, 2020, Circle officially announced that it would provide USDC current and regular savings plans. According to the official website, the current interest rate was 8.5%, and there were four types of regular plans: 1 month, 3 months, 6 months, and 1 year. The interest rate ranged from 9.5% to 10.75%. Circle would cooperate with Genesis Global Capital on the savings product, and the income would come from lending US dollars to institutional counterparties willing to pay interest.
At present, the savings product has not been officially launched. Users can fill in the information to apply for joining the waiting list.
‘Financial Times’ said Libra may be available as soon as January 2021
On November 27, 2020, the British ‘Financial Times’ published an article stating that Libra, a stablecoin project led by Facebook, may be available as soon as January 2021. According to relevant sources, only one stablecoin fully secured by US dollars will be launched initially, but other currencies and combination stablecoins will be launched later.
Three informants said that the specific launch date of Libra would depend on when the project is approved by the FINMA to provide payment services, but it may be January next year at the earliest. The FINMA said it would not comment on the application of Libra.
3. Stablecoins accelerate the pace of outside the cryptocurrency market
The acceleration of stablecoins outside the cryptocurrency market has not only attracted the attention of more countries or international regulatory agencies but also gradually expanded application scenarios. In November, Circle announced the use of USDC to assist medical staff in Venezuela, showing that the application of stablecoins is not only limited to the world of cryptography. After the European Commission, the G20 joint FSB, and the International Monetary Fund successively released their regulatory reports on stablecoin in October, the UK Treasury Department stated that it would develop a regulatory framework for stablecoin, and the BIS also issued a supervision report of stablecoin.
Circle used USDC to assist Venezuelan medical staff
In November, the supply of USDC has reached $3 billion, and its application scope is gradually integrated with the real world. According to Circle’s official website, Circle has cooperated with local governments and AirTM, the financial platform to allocate funds to COVID-19 health care workers in South American countries, and this process is completed through USDC.
According to the ChainNews, the specific process can be simplified as follows: the U.S. Treasury Department and the Federal Reserve released funds to Guaidó’s government account in a U.S. bank, the Guaidó government used these funds to mint USDC, and send them to Airtm, the Dollar-denominated blockchain payment platform, then distributed in the form of AirUSD to the accounts of Venezuelan medical staffs, who can withdraw to local bank accounts.
The UK Treasury Department will develop the stablecoin regulatory framework
In a statement issued by the UK Treasury Department on November 9, British Chancellor of the Exchequer Sunak stated that after the UK leaves the European Union, the government’s attitude to financial services would be guided by the most productive and innovative industries. Financial Services in the UK should ‘leading the global dialogue on new technologies such as stablecoins and CBDC’, which will consolidate the leading position of the UK in the field of financial technology.
The statement mentioned that new technologies such as stablecoins might change the way people store and trade currencies, making payments cheaper and more convenient. To realize the potential value of stablecoins and manage the risks of consumers and financial stability, the government will propose regulatory measures for related stablecoin programs to ensure that they meet the minimum requirements for payment methods.
The BIS released a stablecoin report detailing risks, opportunities, and supervision
The BIS released a stablecoin report on November 24-’Stablecoins: Risks, Opportunities, and Supervision’, detailing the potential role of stablecoins and their implications for regulation. The report outlined the market development of existing stablecoins and described their potential to embed powerful currency tools in the digital environment, and argued that stablecoins were designed to challenge existing e-commerce digital payment methods, including traditional bank payments, credit cards, and electronic wallets, etc. At the same time, stablecoins, especially the Libra project led by Facebook, also pose a challenge to the global financial system. The report analyzed and discussed the Libra project and related regulatory solutions, believed that the regulation of stablecoins should be based on the many conveniences it might provide, rather than being limited to the existing regulatory framework, and that the implementation of ‘embedded regulation’ could be considered, that is, directly embedding regulatory requirements into the implementation of a ‘global stablecoin’ system.
Tips
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 you with more analysis of the development status, trends and international impact of stablecoins to help readers stay updated on the development status of stablecoin.
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