In this issue of Coin Metrics’ State of the Network, we take a data-driven dive into the stablecoin sector, exploring its pivotal role as a medium of exchange in bull markets and analyze on-chain adoption across key metrics.
Key takeaways:
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The aggregate supply of stablecoins issued has expanded to $189B, with Tether’s USDT represents $125B (66% of total supply), while stablecoins issued on Ethereum account for $104B, or (55% of total supply).
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Beyond serving as a store of value, stablecoins are crucial as a medium of exchange in bull-markets. Stablecoin denominated trading volumes across major exchanges surged to $120B post-election, with top trading pairs including BTC, ETH, SOL & memecoins.
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On-chain activity trended higher as adjusted stablecoin transfer volumes (USD) crossed $50B in November. Solana stablecoins hit an all-time high in stablecoin transactions, driven by USDC usage.
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Ethena’s USDe and staked USDe (sUSDe) saw rapid growth since Q3, fueled by bullish market conditions and rising funding rates, showcasing the evolving yield-driven dynamics of stablecoins.
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