The bull market does not retreat, and stablecoins continue to open
Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: JX kin, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: JX kin, reproduced by Odaily with authorization.
Looking at the total amount of stablecoins issued based on Ethereum, USDT still ranks first with 22.4 billion US dollars; USDC follows closely with a total of 10.1 billion US dollars.
Since the beginning of this year, the increase in the total amount of stablecoins has almost matched the increase in the price of Bitcoin and Ethereum.
At the beginning of the year, Bitcoin broke through $600 million from around $28,800; Ethereum rose from $800 to $2,000, an increase of 120%. In just one quarter, the total amount of USDT has increased from 21 billion US dollars to 41.6 billion US dollars, and the circulation has doubled; at the beginning of the year, USDC’s circulation market value was about 4 billion US dollars, and it has grown to 10 billion US dollars so far, an increase of more than 150%.
Judging from market data, USDT is still far ahead of other stablecoins. However, in addition to USDC, the indispensable BUSD in the Binance ecosystem, the mainstream stablecoin DAI on the chain, and the algorithmic stablecoins AMPL and Basis Cash are all competing for their respective market positions in different fields.
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USDT issuance doubled in only the first quarter
The issuance of stablecoins often reflects the currency demand in the encrypted asset market.
According to the calculation of circulation, USDT is still ranked first in the total amount of stablecoins issued based on Ethereum, with a total amount of 22.4 billion U.S. dollars; USDC ranks second with a total amount of 10.1 billion U.S. dollars, and BUSD ranks third with a total amount of 3.24 billion U.S. dollars The US dollar, the decentralized stable currency DAI on Ethereum is the fourth, with a total of 2.82 billion US dollars, and the total amount of PAX is 810 million US dollars, ranking fifth.
USDT is still the leader in the stablecoin market. According to DAppTotal data, plus assets based on different chains such as TRON, EOS and Omin, the total supply of USDT has reached 41.6 billion US dollars, of which the ERC20 standard accounted for 22.4 billion US dollars, the TRC20 standard accounted for 17.8 billion US dollars, and the OMIN standard accounted for 22.4 billion US dollars. $1.21 billion.
In fact, since the beginning of this year, the total issuance of various stablecoins has increased significantly. Since January this year, the total issuance of USDT has increased from 21 billion US dollars to 41.6 billion US dollars, and the circulation has doubled in just one quarter. In the past 7 days, the USDT issuance ratios of Ethereum and TRON were 7.6% and 5.9% respectively.
Accompanied by the increase in the total amount, there is also the transaction volume. QKL123 data shows that USDT’s transaction volume on January 1 this year was 20.7 billion U.S. dollars, and rose to a record high of 62.5 billion U.S. dollars on January 11. On March 21, USDT’s The turnover was US$46.2 billion, an increase of more than 120% compared to the turnover in early January.
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USDT transaction volume has doubled compared to the beginning of the year
During the "3.12" black swan, Bitcoin once fell below $4,000, and Ethereum fell below $90. The market decline has brought buying demand instead. After that, Tether issued USDT at a rate of 200 million USD per week. Since then, Bitcoin has returned to above $10,000 in early May, and Ethereum has also risen to $207 during the same period.
In addition to the centralized trading market, stablecoins have also flowed into DeFi applications on the chain on a large scale, and liquidity mining has stimulated the circulation of stablecoins on the chain.
According to OKLink data, the circulation of USDT on Ethereum is 22.416 billion US dollars, an increase of 1.498 billion US dollars in the past week; the circulation of USDC is 10.18 billion US dollars, an increase of 681 million US dollars in the past week; the circulation of DAI is 2.891 billion US dollars, an increase of nearly Added $154 million for the week.
Stablecoins have undoubtedly become an indispensable part of the encrypted asset market. USDT, which has a first-mover advantage, still supplies mainstream demand. However, there are no shortage of challengers in the stablecoin market.
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Compliant Stablecoin USDC Market Share Expands
On March 20, Circle, the operating body of USDC, took the initiative to tweet to celebrate that the market value of the stablecoin USDC has now exceeded 10 billion US dollars, and its market share is close to one-third of that of USDT. This is also the stablecoin that is closest to the market share of USDT among the stablecoins endorsed by centralized institutions.
USDT is backed by the Bitfinex exchange, while USDC is backed by Coinbase, the largest compliance exchange in the United States. In October 2018, Circle and Coinbase, the operating entities of USDC, jointly established the CENTER Alliance, a network based on a membership framework and governance scheme for the development of stablecoins. Soon after, the consortium launched the US Dollar Coin (USDC), the first stablecoin issued from the blockchain.
USDC entered the market four years later than USDT, but the rate of issuance does not lag behind the latter, and even surpasses it.
At the beginning of January this year, USDC’s circulating market value was still 4 billion US dollars. In the same quarter, it has grown to $10 billion, an increase of more than 150%. During the same period, the transaction volume of USDC also rose from 300 million US dollars to 700 million US dollars, an increase of more than 130%. Binance, Bitfinex, Coinbase, OKEx and other 50 exchanges currently support the trading of USDC and other encrypted assets.
The biggest difference between USDC and USDT is compliance. Tether, the issuer of USDT, continues to wrestle with U.S. regulators in 2020. In February of this year, after Tether paid a fine of $18.5 million, it reached a settlement with the New York State prosecutor investigating it, which temporarily eased the risk of thunderstorms that the outside world worried about.
Recently, Coinbase was fined $6.5 million by the U.S. Commodity Futures Trading Commission (CFTC) for publishing misleading trading data. The media speculated that this matter may cause Coinbase to postpone the listing time from March to April. Although the time has been postponed, Coinbase's listing plan has not changed, and its listing will leave imagination for USDC to flow to the broader mainstream financial world.
Also challenging USDT's market position is BUSD, a stablecoin that plays an important role in the Binance ecosystem, with a market value of $3.2 billion. On Binance’s CEX trading platform, BUSD’s trading pairs for mainstream encrypted assets are listed on the homepage; while on Binance Smart Chain, the pledge pool of various DeFi applications is also indispensable to the BUSD pool. In the Binance ecosystem, BUSD is replacing USDT.
In the centralized stable currency force, different exchanges have become the strength backing of all camps. In the decentralized world, Ethereum is the home of stablecoins.
