From the Editorial Team:
The crypto industry has reached an important milestone: the total 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 the decentralized finance (DeFi) sector are also constantly expanding.
The rapid proliferation of stablecoins may have far-reaching implications for the payment industry and the entire economic system. From a micro perspective, stablecoins are expected to reduce payment costs to less than one US dollar; 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 has exceeded $200 billion, setting a new historical high. In just 40 days after the election, the market has grown from $170 billion to $200 billion, which is the fastest growth 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.
· Trading 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 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
sUSDe total locked value 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%, leading to a large influx of funds 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 locked value (TVL). In the past day, the largest net buy 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 limit multiple times in December, and each time the limit is quickly reached. Meanwhile, the lending demand for USDC and USDT has also increased accordingly.
· Trading Focus: This is the largest single transaction of providing sUSDe to Aave, totaling 66.68 million sUSDe. The triggering address 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 operate these tokens on Morpho.
Sky Dollar
USDS shows strong momentum, multi-chain expansion helps reach $1.2 billion in circulation
· Since being renamed to Sky Ecosystem on September 18, 2024, USDS (Sky Dollar, formerly DAI) has grown rapidly after launching on Ethereum, reaching a circulation of $10 billion, and peaking at $12 billion in mid-November. Subsequently, USDS 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 $12 billion on Ethereum and $5.42 billion on Solana. Although Ethereum still accounts for 94% of the total supply, the adoption rate of USDS on Solana is rapidly increasing.
· USDS transactions on Solana and Ethereum exhibit different characteristics. The average transaction amount on Solana is $3,000, demonstrating its advantages in fast, low-cost micro-payments; while on Ethereum, the average transaction amount is $24,000, more for high-value financial activities.
· After the renaming, the trading volume of converting DAI to USDS reached $2.4 billion, while the reverse conversion was $1.7 billion, mainly driven by decentralized exchange transactions. Although MakerDAO's renaming has been controversial, the growth of USDS across multiple chains and the increase in 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 locked value (TVL) has reached $65 million, while maintaining the stable peg of fxUSD. The upcoming v2 release will introduce the "USD Delta Neutral Stable Pool", providing over 10% annualized yield (APY) without relying on inflationary token rewards, setting a new standard for DeFi yields.
· The design of f(x) is centered on sustainability, and the protocol fees have been distributed to users for over 900 ETH. This growth is entirely based on actual usage demand, rather than relying on token rewards.
· The yield of the f(x) Protocol has recently increased from 10% to over 30%, which is mainly derived from protocol fees and trading volume, reflecting the robust economic model of f(x).
· Trading Focus: A DeFi user has just deposited around $1 million into the fxUSD-GHO liquidity pool, aiming to obtain the high yield of over 30% APY provided by the f(x) gauge. This large deposit reflects the growing market confidence in the f(x) Protocol.
First Digital USD
The usage scenarios of FDUSD on Ethereum and BNB Chain have different focuses
· Ethereum has always been the dominant chain in the stablecoin market, which is also reflected in the supply of FDUSD. Data shows that the demand and usage of FDUSD on Ethereum is higher than on the BNB Chain. Recently, the supply of FDUSD on Ethereum has increased by $993 million, and the current total supply has reached $1.93 billion, compared to $921.3 million a year ago.
· On Ethereum, FDUSD is mainly used for daily transactions (such as exchange), with over 95% of the supply concentrated on Binance. On the BNB Chain, FDUSD is more often used for DeFi yield tools.
Tether
USDT transaction volume doubles, market share approaches 70%
· Over the past year, the daily transaction volume of USDT 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 supported by Tether, with a fee 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%, continuing to maintain its dominant position in the stablecoin market.
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