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Oct 5, 2022 15 tweets 5 min read Read on X
This report (and this 🧵) explores dollar-pegged #stablecoins, providing a comprehensive overview of their evolution over time.

We’ll discuss the major stablecoins around today, their designs, their dynamics, and their usage.
To start, #stablecoins are digital representations of other assets for use on #blockchains.

Although able to track the price of other underlying assets, stablecoins are most commonly linked to USD. That’s what our report focused on. Image
At a $150bn+ market cap, stablecoins have become an increasingly important part of the #crypto economy.

They combine the benefits of open crypto with the price consistency of widely accepted fiat currencies.

3/6 of the top crypto assets by market cap today are stablecoins. ImageImage
Critics often dismiss #crypto because they fail to recognize the merits of the underlying technology.

Stablecoins offer a viable use case today, functioning as a widely accepted unit of account for pricing assets and as a stable medium of exchange to facilitate payments.
Like crypto, stablecoins can also support financial inclusion in a world where nearly 2B people, or ~25% of all global citizens, are unbanked.

...And many others are underbanked, as they lack access to basic financial services.
Stablecoin designs largely fall into 3 main categories:

◼️ fiat-backed
◼️ overcollateralized
◼️ algorithmic

...each comes with different advantages/shortfalls, stability mechanisms, and competitive dynamics. Image
#Tether, the long-standing leading #stablecoin by market value and volume, has endured a long history of criticisms.

Its market dominance has eroded rapidly over this past year.
It’s the world’s first stablecoin that enabled quick and easy trade settlement in dollars.

Tether also threw a lifeline to #crypto exchanges that lacked access to the traditional banking system but wanted to offer pairs based on #USD.
#MakerDAO’s DAI has emerged as a leader among “decentralized” stablecoins, but its current form has deviated significantly from its original vision.

Recently, it has become significantly reliant on USDC for stability.
The collapse of a number of other algorithmic stablecoins has led most protocols or platforms behind algorithmic stablecoins to fundamentally alter their designs to more collateralized models.
On-chain transaction data and price histories provide meaningful insights to assess the resilience and usage of each type.
New stablecoins innovations continue to emerge.

Potential users should be prepared with a risk assessment framework while conducting due diligence for each offering.
Comprehensive regulatory regimes overseeing stablecoins could soon be established across major global economies, which will have significant consequences for the issuance, redemption, usage, and adoption.
Despite recent failures and macro headwinds, the evolution of stablecoins is not slowing, and the ones that endure the toughest challenges are likely to gain share and thrive.
We dig into the biggest players across all three categories at length in the report below. And follow us here for more #crypto knowledge.

galaxy.com/research/white…

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More from @galaxyhq

Nov 26
Since 2021, the number of Bitcoin L2 projects has increased 7x, from 10 to 75. With $447M invested since 2018, Bitcoin L2s are transforming BTC’s utility.

@hiroto_btc's (@glxyresearch) latest report explores the evolution of Bitcoin L2s, from key characteristics and scaling solutions to a funding breakdown and a TAM analysis.

Here's everything you need to know about this ecosystem🧵Top Bitcoin L2 Funding Deals by Type
Bitcoin L2 projects have seen unprecedented growth, with 36% of all venture funding allocated in 2024 alone. By 2030, over $47B of BTC could be bridged into L2s to fuel DeFi, fungible tokens, payments, & more.
Early pioneers like Lightning Network & Liquid paved the way for Bitcoin L2s. Now, advancements in Rollups (zk & Optimistic) are unlocking new applications. Think Ethereum-like innovation but with Bitcoin’s security. History of Bitcoin L2s
Read 10 tweets
Sep 13
🏛️SEC Appears to Ease on SAB 121: On Sep. 9, SEC Chief Accountant Paul Munter disclosed a path for banks to gain relief from SAB 121, a rule requiring digital assets held by publicly traded companies to be on balance sheets. This could open the door for banks to enter the crypto custody market.
🏛️Background on SAB 121: Introduced in 2022, SAB 121 mandates that publicly traded companies account for digital assets on their balance sheets, posing risks to custody clients, who may become unsecured creditors in case of bankruptcy.
🏛️Impact on Banks: Many banks have avoided crypto custody due to the requirement of holding cash 1:1 for crypto on their balance sheets, as well as SAB 121. This has deterred them from entering the space until now.
Read 9 tweets
Aug 1, 2023
1/ Bitcoin Mining an Industry in Limbo?
 
Thread 👇 Image
2/ All the data in this thread comes from our new mid-year mining report written by @bitcoinbeezy @guerillav2 @simritdhinsa and @samellkay from the Galaxy Mining team with the help of @glxyresearch is now live – read the full report here galaxy.com/research/white…
3/ Bitcoin Price
 
Increased ~80% during the first 6 months of the year coming of the lows in the $16k range. Much of the improvement in bitcoin price is likely attributable to macroeconomic factors as inflation cooled as well as Blackrock’s announcement of a spot ETF. Image
Read 11 tweets
Apr 26, 2023
1/ Galaxy is proud to announce a strategic alliance with @DWS_Group, one of the world’s premier asset managers, to create and distribute digital asset exchange-traded products and other asset management solutions. A 🧵on this exciting collaboration. galaxy.com/newsroom/galax…
2/ Galaxy and DWS recognize that Europe is fast becoming a more robust, mature market for digital assets. Together, we’re committed to developing a truly unique and innovative suite of digital asset products, starting with ETPs.
3/ According to a late 2022 Fidelity survey, more than two-thirds of European respondents said they owned digital assets. Nearly half of institutional investors surveyed said they were seeking exposure to digital asset products. 🔗 businesswire.com/news/home/2022…
Read 7 tweets

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