Learn about the latest data on stablecoin networks in one article

activity distribution

Another way to compare stablecoins is to look at the number of accounts that account for the majority of on-chain activity (e.g. 80% of all on-chain activity) (see chart below). If a small number of accounts represent the majority of transactions, it indicates a lack of usage of the stablecoin outside of a few exchanges.

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Initially, Paxos appeared to have a broad active user base. However, a closer look at the most active traders on Paxos yields an interesting finding: the two most active accounts on Paxos are associated with MMM BSC, a Ponzi that has seen exponential growth in trading activity over the past year. scam.

Over 40% of PAX transactions are now directly related to this Ponzi scheme.

Another interesting finding is that the most active Tether transactions on Tron accounts are all related to “dividend payments.” At one point, this accounted for more than 90% of Tether transfers in Tron.

Transfer Value Allocation

If stablecoins are truly used as a means of payment for retail users, we should see the majority of transfers be worth less than $100 (PayPal’s average transaction value in Q1 2020 was around $58). On the other hand, if stablecoins are viewed as a liquidity rail for traders, then most payments should be of high value (in our case, we picked $100,000 as a floor).

It turns out that both assumptions are correct, depending on which stablecoin you're looking at. Some stablecoins like Paxos and Tether on Tron saw a lot of retail-like transactions, likely due to the presence of MMM and other dividend schemes on these assets. Other stablecoins such as HUSD and Binance USD have a large percentage of payments, exceeding $100,000."secondary title"joint ownership

There is an idiom that says:

Birds of a feather flock together

• . Similar questions can be asked about stablecoins: are similar stablecoins owned by the same account?

• Two pairs of assets come to life, jointly owned by single chart accounts. TrueUSD vs. USDC and HUSD vs. Binance USD.

in conclusion

Owners of TrueUSD seem more likely to own other stablecoins.

Analyzing stablecoin supply and activity distribution This analysis is only preliminary, and there are many things that can be compared and contrasted between stablecoins.

Interpretation of market data

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Interpretation of market data

ETH continues to grow rapidly, with both market capitalization and active addresses increasing by 11% week-on-week. While BTC’s market capitalization and realized market capitalization are also growing week-over-week, ETH is leading the way again.

network highlights

ETH is also closing the gap in terms of daily transaction fees. ETH had an average daily transaction fee of $463,600 in the last week, compared to BTC’s $603,700. As the weekend drew to a close, ETH’s transaction fees surpassed BTC’s daily fees on both June 5 and 6.

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network highlights

The total daily transaction fee of ETH on June 5 was higher than that of BTC. While ETH also surpassed BTC in daily fees on March 12 (due to network congestion caused by a price crash), BTC has had higher daily transaction fees than ETH for most of history.

Amid the recent halving, BTC fees surged to their highest levels since July 2019. The rise in fees is largely due to increased competition for block space.

ETH’s fees are also skyrocketing at the same time. At least in part because of the continued growth of Tether (USDT_ETH) issued on top of ETH. The transfer of USDT_ETH soared to a record high of 232,300 on June 6.

Interpretation of market data

In addition to computing power, the actual market value of BTC has been recovering relatively quickly after the crash on March 12. The actual market value of BTC reached 105.98 billion US dollars on June 6, which is close to a new high this year. The market value of BTC reached its highest point in February 2020 at 106.26 billion U.S. dollars, and then fell to about 100 billion U.S. dollars on March 12.

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Interpretation of market data

For those keeping up with the digital asset space, there are few occasions that can feel like an "alt season". Speaking of which can also stir up feelings of nostalgia, exhilaration, even greed, and, of course, "times are gone" pain.

For those unfamiliar, alt season refers to the part of the cryptocurrency investment cycle during which altcoins (i.e. small-cap digital assets that are neither BTC nor ETH) are very hot. Although there is no specific regulation for the concept of Shanzhai season, once the time comes, you will definitely know. Common informal indicators include when tokens with a market cap below $50 million post double-digit returns for multiple days in a row. If when you start reading about stocks on forums, trying to predict the next Coinbase-like company to go public, or when you get headaches about how long it takes to transfer funds to an exchange of the desired class of currency , that may be the season of copycats.

In order to fully understand the situation in May, we need to combine the trends in April. April 2020 has been a very good month for BTC investing. Paul Tudor Jones told the world that BTC is a wise trading choice to hedge against inflation. Coinbase data shows that checks from the CARES Act stimulus boosted the number of deposits on its platform. The personal savings rate increased to 33 percent from 12.7 percent in March, giving Americans greater cash reserves to invest in cryptocurrencies. While there is a lot of predictive element to this, let's look at the data.

Among the changes in April, it is worth noting that Coinbase, Kraken, and Bittrex have increased their spot volume market share. These exchanges are typical platforms for retail investors to enter the market with currency.

In May, retail investors also had a good experience. Aside from BTC dip buyers, online stockbrokers like Robinhood, Fidelity, TD Ameritrade, and E*Trade all reported record retail trading activity. The group of investors, or speculators, who bought heavily traded stocks at low prices rose 14% in April as the S&P 500 rebounded strongly.

An oft-studied trend in behavioral finance is that overconfident investors tend to increase their risk horizons to take greater risks. With this in mind, it’s no surprise that trading volumes are shifting away from fiat-entry exchanges to exchanges serving long-term high-risk altcoins.

In order to verify the quantity of the above assets, we look at the changes in the market share of spot transactions calculated by the underlying assets.

As of the relevant date and measured using a rolling 7-day rolling average, the chart above shows the asset's share of spot trading volume at the beginning and end of May. Calculated using a rolling 7-day average up to and including the relevant date. Note that the x-axis of the graph has a break between 3.5% and 10%, which allows us to include BTC and ETH while giving a better understanding of the volume share represented.

We can see that in May, the transaction volume of BTC and ETH decreased by 5% and 2% respectively. This volume was transferred to assets such as ETC, OKb, Theta, OMG, and MATIC. When trading volume shifts into these riskier assets, it is a strong signal that knockoff season has arrived.

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