Footprint Analytics Analyst: grace
Data Source: Footprint Analytics Stablecoins Dashboard
This post is part of our Year in Review series.
This post is part of our Year in Review series.
Footprint Analytics According to the data of the U.S. dollar stable currency USDC in December, the circulation exceeded 42.2 billion U.S. dollars, and Market Cap ranked second among many stable currencies, second only to USDT's 78.4 billion U.S. dollars. In the same month, the Market Cap of the decentralized stablecoin UST exceeded $10 billion.
Footprint Analytics - Market Cap of USDT, USDC & UST
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Cryptocurrency transactions are frequent, the demand for liquidity and margins for derivatives has increased, and the issuance of stablecoins has increased. With the rapid expansion of the stablecoin market, countries have also noticed the risks of stablecoins, and have conducted research on whether stablecoins need to be regulated, and how to regulate them. This article will review the 2021 of stablecoins from 6 landmark events.FRAXAlgorithmic Stablecoin ESD and
From the data of Footprint Analytics, we can see that in January, the Market Cap of the algorithmic stablecoin ESD rose from US$120 million to US$440 million, an increase of 266.7%, and FRAX rose by 351.6% to US$140 million. The two are respectively ranked ninth and tenth on the stablecoin Market Cap in January.
Footprint Analytics - Market Cap of ESD & FRAX
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Algorithmic stablecoin ESD, full name Empty Set Dolla, is a synthetic asset issued by Empty Set in 2020. It is a decentralized algorithmic stablecoin anchored to the US dollar. FRAX is a stablecoin protocol using a hybrid algorithm, which will be issued by FRAX in 2020.
The new algorithmic stablecoin FeiProtocol announced the closure of the burn mechanism
While protecting users' assets, FEI's reputation plummeted. Even with the financial support of big-name institutions such as Coinbase, it doesn't help. We can see from the data of Footprint Analytics that hundreds of millions of dollars have flowed out, and FEI's Market Cap has also fallen off a cliff. Although there was a small peak fluctuation on November 5-7, it has generally not returned to the level of the boom period.
Footprint Analytics - Market Cap of FEI
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Stablecoins anchored to the euro and other fiat currencies are gradually increasing
Among the many non-dollar-anchored stablecoins, the euro-anchored stablecoin EURS and SEUR are comparable, the Korean won stablecoin KRT follows closely, and the performance of the Japanese yen stablecoin JYPC is relatively mediocre.
Footprint Analytics - Market Cap of Stablecoins other than the pegged U.S.
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It is worth mentioning that El Salvador plans to launch a local stablecoin issued by the government before the end of 2021, but no news has been released in the end. Instead, in September, bitcoin will be used as the legal tender of the country, all in to the world of blockchain bitcoin.
Stablecoin projects hit by 'flash loan' attack
While the stablecoin market is expanding rapidly, the attacks and tests it faces are also increasing. Different stablecoin projects have been attacked successively, mainly "flash loans".
In June, the stable currency project SafeDollar deployed on Polygon was attacked, and the value of the stable currency SDO issued was once zero. Although there has been recovery since then, it has not yet returned to the anchor value of $1.
In November, OUSD, a stablecoin issued by Origin Protocol, suffered a flash loan attack, losing $2.25 million in DAI and $1 million in ETH.
Footprint Analytics - Price of OUSD, WUSD & SDO
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Various countries exert efforts to regulate the stablecoin market
In 2021, the total circulation of stablecoins on Ethereum will exceed 100 billion. The stablecoin market has become a behemoth. It is an inevitable trend to be regulated by various countries.
The United States conducts a series of research on stablecoin regulation. In October, the US SEC gained an advantage in the US agency's debate on how to regulate stablecoins, and is expected to obtain the right to regulate stablecoins. In November, the U.S. Financial Stability Oversight Council released a report on stablecoins and urged Congress to legislate. In December, the U.S. House of Representatives Financial Services Committee held a hearing on stablecoin oversight.
South Korea protects cryptocurrency investors. In November, Shinhan Bank said it was testing the issuance of a Korean won stablecoin based on the Hedera Hashgraph blockchain. In the same month, South Korea's Financial Services Commission issued a report restricting the issuance of tokens.
In November, the European Central Bank expanded the PISA framework to cover digital currencies and stablecoins; in December, the Japan Financial Services Agency stated that it will impose new restrictions on the issuance of stablecoins in 2022.
The most eye-catching stablecoin project in 2021: TerraFrom a macro perspective, the stablecoin market is expanding rapidly. Both circulation and Market Cap have increased significantly compared to 2020. From the perspective of specific projects, the most eye-catching stablecoin project in 2021 is none other than Terra. For a detailed introduction, see more
Terra's TVL reached its peak for the full year of 2021 on December 27 at US$21.09 billion, a 62.9-fold increase from US$330 million on January 1. The price of its native token LUNA has also increased by 306.3 times to the highest price of the year at $199.78.
Footprint Analytics - TVL of Terra
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In addition to doubling its own TVL and token prices, the Korean won stablecoin KRT mentioned at the beginning of this article and the stablecoin UST whose Market Cap has exceeded 10 billion US dollars are also handwritten by Terra. Terra-type stablecoins provide a relatively large boost to the development of the Terra project.
The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.
The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.
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This work is original by the author, please indicate the source for reprinting. Commercial reprinting needs to be authorized by the author, and those who reprint, extract or use other methods without authorization will be investigated for relevant legal responsibilities.
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