Stablecoin Weekly Report 01: USDT continues to gain momentum as market capitalization exceeding $10 billion

mykeylab (37)in #steeleo • 4 years ago

Original link: https://bihu.com/article/1127369481

Original publish time: May 19, 2020

Original author: Lie Ma, researcher of MYKEY Lab

The change from traditional currency to encrypted stablecoin is like the change from video to digital, making assets hopefully more efficient in all scenarios. We are looking forward to the development of stablecoin and think it could be the holy grail for the cryptocurrency industry with great opportunities.

We released MYKEY Stablecoin Weekly Report to share our interpretation of the development status of stablecoins and analysis of their development trends to help the participants in the crypto market stay updated on the development status of stablecoin. The MYKEY Stablecoin Weekly Report will be published every Tuesday under normal circumstances, looking forward to maintaining communication with the industry and exploring the development prospects of stablecoin together.

Quick preview

Stablecoin has a market capitalization of over $10 billion, increasing by 100 times since 2017.

USDT outperforms other stablecoins in terms of market capitalization, the number of addresses held, the number of daily transactions on the blockchain, and the volume of transactions.

At the end of October 2017, the number of USDT on Ethereum exceeded the number of USDT on Bitcoin and the circulation of USDT issued through Bitcoin Omni was shrinking.

The main activity of USDT has been transferred from Bitcoin to Ethereum.

The number of daily transactions on Ethereum has accounted for 20% of the total daily transactions on Ethereum, putting some pressure on Ethereum.

The value of daily USDT transactions on Ethereum has exceeded that of ETH, accounting for about 60% of the total transaction volume, making USDT become the most valuable token for transactions.

Overview of stablecoin data

Source: MYKEY, Coinmetric
The market capitalization of stablecoin has grown exponentially since 2017, at the beginning of 2017, the global market capitalization of stablecoin was less than $10 million. Today the market capitalization of stablecoin is over $10 billion and it has increased 100 times in three and a half years.

The diversity of stablecoins has increased in this process. On the one hand, different teams have started to offer stablecoin services with USDC, PAX, DAI, GUSD occupying a certain share; on the other hand, the leading USDT began to be issued on more public blockchains. Also, the usage scenarios of stablecoins have greatly increased, and are no longer limited to legal currency OTC deposits and withdrawals and coin currency transaction.

The number of cryptocurrency addresses held on Ethereum is showing a steady upward trend, with particularly significant growth since 2020.

Source: MYKEY, Debank

It can be viewed that the data of USDT far exceeds that of other stablecoins in terms of both market capitalization and the number of addresses held, as is the number of daily transactions on the blockchain and the volume of transactions.

Source: MYKEY, Coinmetric

Source: MYKEY, Coinmetric

We will focus on providing and interpreting USDT-related data in this Weekly Report.

Overview of USDT data

According to the Tether official website, the USDT is mainly issued on 6 public blockchains: Bitcoin Omni, Ethereum, Tron, Liquid, EOS, Algorand currently.

Source: MYKEY, Tether
According to the data on May 14, Bitcoin Omni circulated 1,222,288,521.46 USDT, Ethereum circulated 5,605,641,458.48 USDT, Tron circulated 1,775,527,389.54 USDT, EOS circulated 5,251,000 USDT, Liquid circulated 16,561,000 USDT and Algorand circulated 1,000,010 USDT.

Before 2019, Tether mainly issued USDT on Bitcoin; after April 2019, Tether began to mainly issue USDT on Ethereum; by the end of October, the number of USDT on Ethereum has exceeded the number of USDT on Bitcoin and USDT also began to be issued more on Tron at this time.

Source: MYKEY, Coinmetric

It can be viewed that the circulation of USDT on Ethereum has been steadily increasing after April 2019, and until March this year, the circulation began to increase sharply. At the same stage, the USDT issued through Omni is shrinking.

With the additional issuance of USDT on Ethereum, its activity on the public blockchain has also greatly increased. We compared the transactions of USDT on each public blockchain and found that the main activities of USDT have been transferred from Bitcoin to Ethereum currently.

Source: MYKEY, Coinmetric

The increased activities of USDT on the blockchain have put some pressure on Ethereum. According to the data, the number of daily USDT transactions on Ethereum has accounted for more than 20% of the total daily transactions on Ethereum in the past month.

Source: MYKEY, Coinmetric

In terms of transaction value, the value of daily USDT transactions on Ethereum has exceeded that of ETH, making USDT become the most valuable token for transactions. According to our estimates, the volume of transactions of USDT on Ethereum accounts for about 60% of the total transaction volume on Ethereum in the past month.
Source: MYKEY, Coinmetric

At the end of April, USDT was further issued on Tron, which currently exceeds 1.8 billion USDT on Tron, and Tron surpasses the Bitcoin to become the second-largest USDT issuance blockchain. We believe that the additional issuance of USDT on Tron has nothing to do with the performance limitations of the Ethereum. As with USDT overflows from Bitcoin Omini, USDT will overflow from the Ethereum to other encrypted networks in the case of performance limitations.

This is what we're sharing in this MYKEY Stablecoin Weekly Report, welcome to stay tuned for follow-up weekly reports. We will provide more interpretations of the development status of stablecoins and analysis of their development trends to help you stay updated on the development status of stablecoin in the follow-up report.

PS: MYKEY Lab has the final right to interpret the content of the article, please indicate the source for the quotation. Welcome to follow our official account - MYKEY Lab: MYKEY Digital life.

About Us