Author: OurNetwork
Compiled by: TechFlow
From the editorial team:
The crypto industry has reached an important milestone: the supply of stablecoins has surpassed $200 billion. This means that dollar-pegged assets are being widely used in both personal and institutional payments, and their applications in decentralized finance (DeFi) are also constantly expanding.
The rapid proliferation of stablecoins may have far-reaching implications for the payments industry and the entire economic system. From a micro perspective, stablecoins are expected to reduce payment costs to less than one US cent; from a macro perspective, the availability of the US dollar may pose a threat to countries with unstable currencies.
Although this trend is still evolving, if stablecoins have grown from a crypto niche to an important industry in the past five years, they may further integrate into our daily lives in the next five years.
Next, let's take a look at the latest on-chain dynamics of these digital assets.
Stablecoins
USD0 | USDe | USDS | fxUSD | FDUSD | USDT
Stablecoin supply exceeds $200 billion, setting a record for the fastest growth
The total stablecoin market capitalization has exceeded $200 billion, setting a new historical high. In the short 40 days after the election, the market grew from $170 billion to $200 billion, the fastest growth rate since 2021. Tether (USDT) grew by $20 billion, reaching a total of $140 billion, ranking first; Circle's USDC grew by $6 billion, reaching a total of $41 billion; and Ethena's USDe even doubled, growing from $2.5 billion to $5.5 billion.
The number of stablecoin holders continues to grow, currently reaching 133 million. Among them, USDT leads with 81.7 million holders, while BSC-USD has 25.8 million holders. Although the growth of USDC is relatively slow, with only 18 million holders, smaller stablecoins like PYUSD and USDe are also rising rapidly, showing the diversification of the market.
USD0 is a stablecoin backed by the tokenized US Treasury asset USYC from Hashnote, and has grown by more than 130% in the past month, with a market capitalization approaching $800 million. This growth is mainly due to staking rewards of over 30%, making USD0 the seventh-largest stablecoin.
Transaction Focus: In the past 5 days, Tether has pre-minted 4 billion USDT on Ethereum, with each transaction volume ranging from 1 billion to 2 billion. This transaction is the latest pre-minting transaction, bringing Tether's Ethereum treasury balance to 1.5 billion. These tokens are expected to enter circulation in the coming days, further driving the growth of Tether's supply.
Ethena
Matt Casto | Website | Dashboard
sUSDe total value locked exceeds $4 billion
Ethena's stablecoin ecosystem has seen significant growth in the past month, thanks to the currently advantageous capital rates. Over the past month, the annualized yield (APY) of sUSDe has exceeded 20%, with a large amount of capital flowing into Aave and Pendle. At the same time, over 50 million USDe have been distributed to sUSDe stakers, and the supply of sUSDe has also doubled. USDe has now become the third-largest stablecoin, second only to USDT and USDC.
The demand for sUSDe in the lending market is very strong, especially in the sUSDe-USDT pool on Uniswap, which is the largest pool in terms of sUSDe total value locked (TVL). In the past day, the largest net buy-in of sUSDe occurred in this pool.
Due to the high yield of sUSDe, the demand for it in the lending market continues to grow. Aave has raised the supply cap multiple times in December, and each time the cap is quickly reached. Meanwhile, the lending demand for USDC and USDT has also increased accordingly.
Transaction Focus: This is the largest single transaction of providing sUSDe to Aave, totaling 66.68 million sUSDe. The address triggering the transaction is the third-largest borrower on the Spark platform, who has recently purchased a large amount of PT-sUSDe maturing on December 26, and may further deposit these tokens into Morpho for additional operations.
Sky Dollar
Seoulcalibur.eth | Website | Dashboard
USDS shows strong momentum, multi-chain expansion helps reach $1.2 billion in circulation
Since being renamed to the Sky Ecosystem on September 18, 2024, USDS (Sky Dollar, formerly DAI) has developed rapidly after launching on Ethereum, reaching a circulation of $1 billion, and peaking at $1.2 billion in mid-November. Subsequently, USDS has expanded to Solana and plans to soon launch on the Base network. The trading volume of decentralized exchanges (DEXs) is also steadily growing, currently reaching $1.2 billion on Ethereum and $542 million on Solana. Although Ethereum still accounts for 94% of the total supply, the adoption rate of USDS on Solana is rapidly increasing.
Transactions of USDS on Solana and Ethereum have different characteristics. The average transaction amount on Solana is $3,000, showing its advantage in fast, low-cost micropayments, while the average transaction amount on Ethereum is $24,000, more used for high-value financial activities.
After the renaming, the trading volume of converting DAI to USDS reached $2.4 billion, while the reverse conversion to DAI was $1.7 billion, mainly driven by trades on decentralized exchanges. Although the renaming of MakerDAO was controversial, the growth of USDS across multiple chains and the increase in its supply are making it a strong competitor in the stablecoin market.
f(x) Protocol
$65 million in locked value validates the sustainable growth model of f(x) Protocol
f(x) Protocol focuses on building sustainable stablecoin infrastructure, and its robust economic model has driven actual growth. Currently, f(x)'s total value locked (TVL) has reached $65 million, while maintaining the stable peg of fxUSD. The upcoming v2 release will introduce the "USD Delta Neutral Stable Pool" that provides over 10% annual percentage yield (APY) without relying on inflationary token rewards, setting a new standard for DeFi yields.
f(x)'s design is centered on sustainability, and the protocol has distributed over 900 ETH in fees to users. This growth is entirely based on actual usage demand, rather than relying on token rewards.
The yield of f(x) Protocol has recently increased from 10% to over 30%, primarily derived from protocol fees and trading volume, reflecting the robust economic model of f(x).
Transaction Focus: A DeFi user just deposited around $1 million into the fxUSD-GHO liquidity pool, aiming to capture the over 30% APY offered by the f(x) gauge. This large deposit reflects the growing market confidence in f(x) Protocol.
First Digital USD
Etimfon Bassey Ikpong | Website | Dashboard
FDUSD has different use cases on Ethereum and BNB Chain
Ethereum has been the dominant chain for the stablecoin market, which is also reflected in the supply of FDUSD. Data shows that the demand and usage of FDUSD is higher on Ethereum than on the BNB Chain. Recently, the supply of FDUSD on Ethereum has increased by $993 million, reaching a total supply of $1.93 billion, compared to $921.3 million a year ago.
On Ethereum, FDUSD is primarily used for daily transactions (such as exchanges), with over 95% of the supply concentrated on Binance. On the BNB Chain, FDUSD is more utilized in DeFi yield tools.
Tether
Henry Child | Website | Dashboard
USDT transaction volume doubles, market share approaches 70%
Over the past year, USDT's daily transaction volume has grown from $19 billion to $42 billion, doubling (based on a 14-day moving average).
Aptos is one of the chains with the lowest transaction fees for Tether, with a cost of only $0.0002 to send USDT on this chain.
Tether's circulating supply has reached $138 billion (up 14% in the past month), with a market share approaching 70%, maintaining its dominant position in the stablecoin market.
