Stable currency data analysis, USDT and DAI are more popular outside of Asia
Stable currency is a very important part of cryptocurrency, which provides strong liquidity for the encrypted world and is an indispensable part of the encrypted world. There are not a few stablecoins in the encrypted world. They are fiat currency, collateralized, algorithmic, unregulated, and regulated, and they are all vying for the market.
The USDT with the largest market capitalization has long been under the threat of regulation, and there are uncertainties. Although most people do not want a single stablecoin to dominate, the currency has a strong network effect, as well as strong liquidity supported by a large number of users. The strength of liquidity It often determines the user's choice, so although USDT often has black swans, it still cannot be replaced.
This article analyzed the data of the main stablecoins on the network and found some interesting conclusions. For example, the network of fiat currency-backed stablecoins has not grown in the past 3 months, and most stablecoins except USDT will not be used for large transactions , most fiat stablecoins have higher usage outside of Asia, and the good development of the collateralized stablecoin DAI.
I. Introduction
Stablecoins are an integral part of the development of the cryptocurrency ecosystem and are receiving increasing attention. Here are the results of applying data science methods to blockchain data for stablecoins.
Stablecoins are generally divided into three main categories:
1. Stablecoins backed by fiat currency: This kind of stablecoin is usually anchored to fiat currency or other physical assets. Tether or TrueUSD (TUSD) are examples of fiat-backed stablecoins, while Digix Global tokens represent commodity-backed stablecoins.
2. Stablecoins collateralized by cryptocurrencies: This stablecoin is backed by a pool of cryptocurrency assets. Typically, stablecoins collateralized with cryptocurrencies tend to require over-collateralization in order to account for market volatility. A well-known example of this is Maker.
3. Unsecured stable currency: This stable currency is not backed by any real assets or encrypted currency assets. On the contrary, its value maintenance is realized by people's expectations of it. The most common unsecured method is minting, which uses smart contracts to algorithmically automatically increase and decrease the stablecoin's supply to maintain its value. Carbon (CUSD) is such a representative.
In the current market, fiat-backed stablecoins dominate, while cryptocurrency-backed stablecoins like Maker are gaining considerable traction. Currently, unsecured stablecoins are still in the experimental stage. Some of these projects are highly sought after, but we don't know much about what's behind them. The following stats may surprise you.
1. Analysis results of stablecoins backed by fiat currencies
1. Investors lose money
IntoTheBlock’s buy-sell analysis shows that some investors bought fiat-backed stablecoins at prices well above their benchmark price. Let's take a look at the data analysis results of Tether (USDT) and TrueUSD.
2. Stablecoin networks are not growing
Despite growing attention, most fiat-backed stablecoin networks aren’t growing, and in some cases, as IntoTheBlock’s address analysis shows, they’re shrinking. The chart below shows this happening with Tether (USDT) and Gemini Dollar (GUSD).
3. Except for Tether, most stablecoins are not used for large transactions
Large transactions have always been a good indicator of the health of a crypto asset. IntoTheBlock’s analysis of large transactions shows that, with the exception of Tether, most fiat-backed stablecoins do not see many large transactions.
4. Most fiat-based stablecoins are more popular outside of Asia
Analysis by IntoTheBlock shows that most fiat-backed stablecoins are more popular in Western countries. Tether was heavily used in Asia a few months ago, but has since been dwarfed by mass adoption in the West. The chart below shows the usage of Gemini Dollar (GUSD) and Tether (USDT) in the East and West countries.
5. Daily active transactions of stablecoins other than Tether are still important
While Tether is by far the dominant fiat-backed stablecoin, other stablecoins in this category see a fair amount of trading activity. The picture below is the daily trading chart of TrueUSD generated by IntoTheBlock.
2. Analytical Results of Stablecoins Collateralized with Cryptocurrencies
1. Some investors lost money investing in Dai
Similar to fiat-backed stablecoins, IntoTheBlock’s buy-sell analysis of Dai shows that some investors bought Dai at prices above $1.
2. Dai is growing
Contrary to the dwindling adoption of fiat-backed stablecoins, Dai’s growth rate is impressive, according to IntTheBlock’s address statistics analysis.
3. Large Dai transactions aren’t consistent
IntoTheBlock’s large-scale transaction analysis shows that Dai’s transactions have been up and down.
4. Dai is more adopted outside of Asia
Somewhat surprisingly, Dai is used more in Western countries than in Asia. IntoTheBlock's analysis is shown below.
5. Dai’s daily active transactions are impressive
If you see that TrueUSD’s daily active transactions are densely packed, let’s take a look at what Dai’s daily transactions are like.
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By Jesus Rodriguez.
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Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.
