Author: MYKEY researcher Yao Xiang
Original title: “Encrypted Stable Coin Report 22: The Inside and Face of Stable Coins”
To help crypto market participants keep updated on the development status of stablecoins, we launched the MYKEY stablecoin report to share our interpretation of the development status of stablecoins and analysis of their development trends. Looking forward to maintaining exchanges with the industry and exploring the development prospects of stablecoins together. Welcome to leave suggestions.
Quick preview
The circulating market value of major stablecoins reached US$25.25 billion, an increase of US$2.540 billion in the past month, an increase of 14.1%.
In the past month, the circulation of USDT, USDC, DAI, and TUSD increased by 2.414 billion, 33 million, 124 million, and 52 million respectively; the circulation of the remaining stablecoins dropped slightly.
The circulation of DAI exceeded USD 1 billion; the circulation of USDC exceeded USD 3 billion.
The stablecoin continues to go out of the circle, and Circle uses USDC to assist Venezuelan medical staff.
Libra may be available as soon as January 2021.
1. Overview of stablecoin data
In the past month (November 1, 2020-November 30, 2020, the same below), the data of each stable currency has increased significantly.
Market circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
Currently, the circulating market value of major stablecoins has reached US$25.25 billion, an increase of US$2.540 billion in the past month.
Source: MYKEY, Coin Metrics
Among them, the main growth comes from Tether. Tether has issued a total of 2.413 billion additional shares, specifically 1.313 billion Ethereum and 1.100 billion TRON. USDC’s circulation increased by 33 million, breaking through the $3 billion mark on November 30. The circulating volume of TUSD increased by 52 million, and the circulating volume of DAI increased by 124 million, breaking through the $1 billion mark; the circulating volume of PAX, BUSD, HUSD, and GUSD decreased by 26 million, 18 million, 36 million, and 1.41 million, respectively.
Number of active addresses
Source: MYKEY, Coin Metrics
Last month, the average daily active addresses of major stablecoins increased by 3.73%.
24 hours on-chain transactions
Source: MYKEY, Coin Metrics
Compared with the previous month, the daily average number of transactions for major stablecoins increased by 0.98%. Among them, the growth rate of USDC is remarkable, from an average of 33,400 transactions per day to 48,300, an increase of 44.7%.
24-hour on-chain transaction volume
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
The average daily transaction volume of major stablecoins increased by US$604 million, an increase of 13.97%. On October 26, Harvest Finance was attacked and stolen $34 million. On-chain transactions fluctuated significantly (the crest in the figure). Excluding the impact of data on the day, the increase can be revised to 37.97%.
2. Stable coins are booming
The entire stablecoin ecosystem is prospering. The amount of funds has steadily increased, and the decentralized stable currency DAI has reached the milestone of 1 billion US dollars; financial services are becoming more and more perfect, and the compliant stable currency USDC plans to provide a deposit plan with the highest annualized return of 10.75%; benchmark products are about to come out, Libra may be in 2021 It officially came out in January.
DAI supply exceeded 1 billion US dollars
On November 13, 2020, the supply of DAI exceeded US$1 billion, and only 71 days have passed since it exceeded US$500 million. The rapid growth of data comes from the demand side on the one hand. 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 US$490 million. The USDC-A debt ceiling has also reached 485 million U.S. dollars, and the utilization rate is over 80%. The USDC locked in the Maker agreement has already 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, and GUSD to DAI is US$26.30 million, accounting for 2.5% of the total. , Except for YFI, only 0.5%. (Data Sources:)
Circle announces high-yield savings plan, up to 10.75%
On November 5, 2020, Circle officially announced that it will provide USDC current and regular savings plans. According to the official website, the current interest rate is 8.5%, and the regular plan is divided into four types: 1 month, 3 months, 6 months, and 1 year, with interest rates ranging from 9.5% to 10.75%. Circle will cooperate with Genesis Global Capital on the savings product, and the proceeds will come from lending 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.
The Financial Times said Libra could come out as early as January 2021
On November 27, 2020, the British “Financial Times” stated that the stablecoin project Libra led by Facebook may come out as early as January 2021. According to relevant sources, initially only one stablecoin fully secured by US dollars will be launched, but other currencies and combined stablecoins will be launched later.
Three sources said that the specific launch date of Libra will depend on when the project is approved by the Swiss Financial Market Supervisory Authority (FINMA) to provide payment services, but it may be January next year at the earliest. FINMA said it would not comment on Libra’s application.
Third, stablecoins accelerate the pace of out of the circle
The acceleration of stablecoins out of the circle 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 workers in Venezuela, showing that the application of stablecoins is not only limited to the world of cryptography. In October, after successively releasing the regulatory reports on stablecoins, the UK Ministry of Finance stated that it would develop a regulatory framework for stablecoins, and the Bank for International Settlements (BIS) also issued a regulatory report on stablecoins.
Circle uses USDC to assist Venezuelan medical staff
In November, the supply of USDC has reached 3 billion U.S. dollars, and its application scope is gradually integrated with the real world. According to the cooperation between Circle and local governments and financial platforms, funds are allocated to COVID-19 health care workers in South American countries, and this process is done through USDC.
According to the chain, the specific process can be simplified as follows: The U.S. Department of the Treasury and the Federal Reserve release funds to Guaidó’s government account in a U.S. bank. The Guaidó government uses these funds to mint USDC and send them to blocks denominated in U.S. dollars. The chain payment platform Airtm is then distributed to the accounts of Venezuelan medical staff in the form of AirUSD, and the medical staff can withdraw to the local bank account.
The UK Ministry of Finance will develop a stablecoin regulatory framework
In the UK Treasury Department’s November 9th, the British Chancellor of the Exchequer Sunak stated that after the UK leaves the European Union, the government’s attitude towards financial services will be guided by the most productive and innovative industries. The UK’s financial industry should “lead the global dialogue on new technologies such as stablecoins and central bank digital currencies”, which will consolidate the UK’s leading position in the field of financial technology.
The statement mentioned that new technologies such as stablecoins may change the way people store and trade currencies, making payments cheaper and more convenient. In order to play to 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 Bank for International Settlements releases stablecoin report detailing risks, opportunities and regulation
The Bank for International Settlements (BIS) released on November 24-“Stablecoins: Risks, Opportunities and Regulations”, detailing the potential role of stablecoins and their implications for regulation. The report outlines the market development of existing stablecoins and describes their potential to embed powerful currency tools in the digital environment. It believes that stablecoins are 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 analyzes and discusses the Libra project and related regulatory countermeasures, and believes that the supervision of stablecoins should be based on the many conveniences it may provide, not limited to the existing regulatory framework, and consider implementing “embedded supervision”, namely Directly embed the regulatory requirements into the realization of the “global stablecoin” system.
The MYKEY stablecoin report in this issue has been shared, please stay tuned. We will provide you with more analysis of the development status, trends and international impact of stablecoins, and help readers continue to update their understanding of the development of stablecoins.
Note: MYKEY Lab has the final right to interpret the content of the article, please indicate the source of the citation. Welcome to follow the MYKEY Lab official account: MYKEY smart wallet.
