Stablecoins Worth Dip in Current Bull Market: Sixdegree Analysis

In keeping with analysis by Sixdegree, stablecoins haven’t seen a major improve in worth through the latest bull market.

Their present complete worth is $129.5 billion, barely decrease than the $139 billion recorded in December 2022.

Ethereum vs. Tron in 2023

This pattern might be attributed to the contrasting developments on two main blockchain platforms: Ethereum and Tron.

The previous has seen a considerable decline in its stablecoin worth, dropping by 34% since 2022 to the present variety of $69.4 billion. In distinction, the worth of stablecoins in Tron has surged by  57.7% throughout the identical interval.

Delving deeper into Ethereum’s stablecoin dynamics, the distribution of those belongings reveals some attention-grabbing patterns.

Half of the stablecoins on Ethereum are held in private wallets, with 30% in centralized exchanges (CEXes) and solely 5.5% in decentralized finance (DeFi) protocols. This represents a major shift from the height of January 2022, when DeFi protocols held about 25% of Ethereum’s stablecoins.

The main stablecoins on Ethereum, particularly USDT, USDC, and DAI, have additionally skilled various developments. USDT has remained comparatively steady with a 23% improve, whereas USDC and DAI have seen decreases of 47% and 30%, respectively.

In distinction, Tron’s market dynamics supply a distinct narrative. Round 30% of its stablecoins are in CEXes, 0.2% in DeFi protocols, and the bulk, roughly 70%, are held in private wallets. This distribution suggests a definite person habits on Tron, leaning extra in direction of private pockets storage, in contrast to Ethereum.

TRON’s Stablecoin Market Thrives in 2023

In 2023, the worth of stablecoins on the TRON community skilled a notable surge attributed to numerous elements.

One key driver was the increasing person base of TRON, with roughly 40% of the 5 million weekly stablecoin customers choosing TRON within the first half of 2023. This desire led to substantial transaction volumes, reaching $70 billion each week.

As of 1H’23, there are presently round 5M weekly customers or entities utilizing #stablecoins actively, and collectively, they carry out roughly 35M weekly transactions! 🤯

At the moment, 40% of the overall energetic addresses are sending #stablecoins on the #TRON community. 🔥 pic.twitter.com/HyidO5ZzaN

— TRON DAO (@trondao) October 29, 2023

This surge is especially notable in rising markets, comparable to Latin American international locations, the place TRON’s low transaction prices and excessive speeds are interesting, particularly in areas with excessive inflation charges like Argentina.

TRON has additionally develop into a major participant within the DeFi and stablecoin sectors, with over $8 billion in its DeFi ecosystem and a considerable improve in stablecoin issuance.

Lastly, the price and effectivity advantages of utilizing it, comparable to decrease transaction charges, have drawn customers to TRON, making it the main blockchain for stablecoin transfers.