Thread by @Crypto_Alex17

Since Stablecoins have been coming out left and right I wanted to dive into them and add my own analysis.

I draw on info from @stablecoinindex, and a recently released report from @blockchain

Here is the thread!👇🏼

Fundementally, i think centralized fiat backed stable coins are a temporary solution within the crypto space. Because of that they don't interest me quite as much as their decentralized counterparts.

Thats not to say that they don't have valuable use cases, i just think that decentralized stablecoins will take over that use case in the medium to long term.

Some crypto use cases
-Fiat onramp
-Store of Value inbetween trades

There are also noncrypto uses cases as well. @valdean dives into those here. These are more valuable than the current crypto use cases.

https://twitter.com/valdean/status/1055197323905576960

There are currently three main types of #stablecoins
1)Traditional backed (USDC,GUSD)
2)Crypto backed (@MakerDAO)
3)Algorithmic (@basisprotocol)

These traditional backed coins are usually backed by USD. My main question i have when it comes to these is what happens to the deposited USD? Is it put in a money market? Do they buy Tbills or provide loans while staying above the required reserve ratio?

Now to dive into some of the data. This is limited due to the lack of data available. I compared every coin that had downloadable data on @coinmetrics

Here is a breakdown by market cap comparing @Tether_to , @MakerDAO and more.

Here is a comparison of Daily Volume for each of the 5 stablecoins

And here is a look at the active addresses averaged out through the last week.

As you can see tether still dominates in all these breakdowns even with the release of USDC and GUSD this last week.

However, their market cap has fallen almost 800m dollars in October. They also removed 500m from the circulating supply on Oct. 24th.

This could be a sign that times are changing in stablecoin land.

Finally i wanted to look at how often these stablecoin's broke there Peg. For that i created the Broken Peg Ratio. It divides the number of days the price is outside of the range 1.03-0.97 by the number of days it has been trading.

This helps account for how much longer @tether has been live compared to the rest of the stablecoins. The Ratio can be seen in the table below.

Conclusion: Tether continues to make up 88% of the stablecoin marketcap, but that could be changing. Tether has not been audited and as seen in the Broken Peg Ratio it has spent 2.55% of the days it has been live outside of a reasonable range.

I would like to see @MakerDAO continue to improve and provide a decentralized option for the stablecoin market.

All stablecoins can be tracked here: stablecoinindex.com @stablecoinindex

You can also dive into my spreadsheet here: docs.google.com/spreadsheets/d…