In 2020, the total transaction value of stablecoins exceeded US$1 trillion, compared with approximately US$936 billion in PayPal’s total transaction value.
Written by: Larry Cermak, Head of Research, The Block Translator: Lu Jiangfei
In the past year, the stablecoin market has achieved incredible growth. The current supply has exceeded 54 billion U.S. dollars, and the average monthly on-chain transaction volume is as high as 380 billion U.S. dollars. Recently, The Block released a 130-page stablecoin market report. The key content analysis of the report is now excerpted as follows:
Since January 2020, a number of stable currency business indicators have achieved tremendous growth, such as:
- The supply of stablecoins increased from US$5.9 billion to US$54.2 billion;
- The average monthly transaction volume increased from 235 billion U.S. dollars to 384 billion U.S. dollars;
- The number of stable currency holding addresses greater than $100 increased from 284,000 to 1.85 million;
- The number of daily active addresses increased from 53,000 to 307,000;
- The average daily transaction volume increased from 98,000 to 594,000.
However, although various indicators have increased a lot, there is not enough product support. In fact, the main reasons for the surge in the stablecoin market last year are as follows:
- Miners use Bitcoin to repay Tether debt;
- The popularity of Tether mortgage derivatives has surged;
- DeFi and income farming boom;
- In the spot market, Bitcoin has lost its lead as a “base currency”;
- Institutional demand for Bitcoin has increased.
In 2020, the volume of stable currency transactions will reach 110 million, with a total transaction value of more than US$1 trillion. In contrast, PayPal’s transaction volume last year was 154 billion, with a total transaction value of approximately US$936 billion. From this, we can clearly see the difference. In terms of average transaction amount, PayPal is about $60 per transaction, while stablecoins are more than $9,000.
On the one hand, stablecoin transaction fees are indeed slightly higher; on the other hand, there are not many other use case scenarios for stablecoins (mainly transactions), so most stablecoin transactions are higher than 100 US dollars. In all stablecoin transactions, about 40% of the transaction amount is between 100-1000 US dollars.
At this stage, the cryptocurrency exchange Binance has the largest number of stablecoins. According to the data at the end of January, the total amount of stablecoins held by Binance is close to 10 billion US dollars. In addition, a large number of stablecoins are also locked in DeFi protocols, such as Curve, Aave and Uniswap.
About 40% of the stablecoin supply comes from exchanges, 11% comes from DeFi agreements, and the rest comes from wallets, over-the-counter trading platforms, trading companies, etc.
The following picture shows the geographical distribution of the two most popular stablecoins, USDT and USDC. Among them, USDT is used most in Asia, and USDC is used most in the United States. This is mainly because many Asian exchanges chose USDT stable currency in the early days. .
The vast majority of stablecoins are anchored to legal tenders, using legal tenders as collateral, accounting for 96%. The main reason for choosing to link with legal currency is that this method is the most scalable and the execution process is very simple.
As of the end of January, 70% of the stablecoin supply is on the Ethereum blockchain, 27% is on the TRON blockchain, and the other 3% is on OMNI.
There is a shocking data. At present, 99% of the stablecoin supply is anchored to the US dollar. There are two main reasons for this situation: one is because traders still prefer the US dollar, and the other is because it is more difficult to cash in non-US dollar stablecoin , The interest rate is also relatively low.
Tether is currently the most “dominant” stable currency. Let’s take a look at the relevant data:
- Tether accounts for 69% of the stablecoin supply;
- Tether accounted for 63% of stablecoin transactions;
- Tether accounted for 87% of the stablecoin addresses holding approximately $100;
- Tether accounts for 88% of the stablecoin daily active addresses;
- Tether accounts for 89% of the average daily trading volume of stablecoins.
The full report can be downloaded by clicking this link .
Source link: twitter.com
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