1/ there is now over $100B of dollars on-chain
there are seven stablecoins with >$1B in market cap
while market cap is an important metric, there are a few other insights we can glean from looking at velocity and collateralization rates
a short thread 👇 on crypto dollars
there are seven stablecoins with >$1B in market cap
while market cap is an important metric, there are a few other insights we can glean from looking at velocity and collateralization rates
a short thread 👇 on crypto dollars
2/ velocity is the rate at which money is exchanged in a financial system
high velocity money tends to be associated with more developed systems
$USDT is HIGH velocity with one tether changing hands more than 1.5x per day
the USDT/BTC trade pair is *BY FAR* the highest volume
high velocity money tends to be associated with more developed systems
$USDT is HIGH velocity with one tether changing hands more than 1.5x per day
the USDT/BTC trade pair is *BY FAR* the highest volume
3/ some stablecoins have virtually no velocity, meaning once issued, their use as a medium for exchange is very limited
notably UST (trueUSD) and TUSD (terra USD) are the lowest velocity - this will be an interesting area to explore further
notably UST (trueUSD) and TUSD (terra USD) are the lowest velocity - this will be an interesting area to explore further
4/ another metric that is useful is collateralization (via @defipulse). stablecoins are a very popular form of DeFi collateral.
USDC is by far the winner here!
over $5B of USDC is locked in DeFi, ~20% of the circulating supply, and yields 5 - 30% per year in APY
USDC is by far the winner here!
over $5B of USDC is locked in DeFi, ~20% of the circulating supply, and yields 5 - 30% per year in APY
5/ USDT only comprises ~$1B of DeFi debt, or 1.5% of the circulating supply of USDT
notably, USDT borrow rates are also lower, at 2 - 20%
structurally, while USDT is much higher velocity than all other stables, it is much less utilized as collateral in DeFi
notably, USDT borrow rates are also lower, at 2 - 20%
structurally, while USDT is much higher velocity than all other stables, it is much less utilized as collateral in DeFi
6/ anyways, just sharing some perspective and nuance on the growing stablecoin ecosystem
while it's exciting to see more dollars on-chain, each stablecoin ecosystem is vastly different and understanding these nuances is helpful and important
/fin
while it's exciting to see more dollars on-chain, each stablecoin ecosystem is vastly different and understanding these nuances is helpful and important
/fin
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