Stablecoins Show Limited Growth in Recent Bull Market
A recent study by Sixdegree reveals that stablecoins have not experienced significant value growth during the recent bull market. The total value of stablecoins currently stands at $129.5 billion, slightly lower than the $139 billion recorded in December 2022.
Ethereum vs. Tron in 2023
The disparity in stablecoin development on Ethereum and Tron can explain this trend. Ethereum has seen a significant decline of 34% in stablecoin value since 2022, with a current value of $69.4 billion. Conversely, Tron’s stablecoin value has surged by 57.7% during the same period.
Further analysis of Ethereum’s stablecoin dynamics reveals interesting patterns in their distribution. Half of the stablecoins are held in personal wallets, while centralized exchanges (CEXes) hold 30%, and decentralized finance (DeFi) protocols only hold 5.5%. This marks a shift from January 2022 when DeFi protocols held about 25% of Ethereum’s stablecoins.
On the other hand, Tron exhibits different market dynamics. Around 30% of its stablecoins are in CEXes, 0.2% in DeFi protocols, and the majority (70%) are held in personal wallets.
TRON’s Stablecoin Market Thrives in 2023
In 2023, TRON’s stablecoin market experienced a significant surge due to various factors. The expanding user base, with approximately 40% of weekly stablecoin users choosing TRON, played a key role. This preference led to substantial transaction volumes of $70 billion per week.
As of 1H’23, there are currently around 5M weekly users or entities using #stablecoins actively, and collectively, they perform approximately 35M weekly transactions! surge is particularly notable in emerging markets…
TRON has also established itself as a major player in the DeFi and stablecoin sectors, with over $8 billion in its DeFi ecosystem and a significant increase in stablecoin issuance. The cost and efficiency advantages it offers, such as lower transaction fees, have attracted users and positioned TRON as a leading blockchain for stablecoin transfers.
Hot Take: Stablecoins Struggle to Gain Momentum in Bull Market
A recent study shows that stablecoins have not experienced significant growth despite the recent bull market. Ethereum has seen a decline in stablecoin value, while Tron’s stablecoin market has thrived. The distribution of stablecoins on Ethereum has shifted, with personal wallets holding the majority. In contrast, Tron users prefer personal wallet storage.
In 2023, TRON’s stablecoin market saw a surge driven by its expanding user base, substantial transaction volumes, and cost efficiency benefits. TRON has also become a major player in DeFi and stablecoins.
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