The total number of stablecoin users worldwide has already created the fifth-largest bank in the United States.

Original Author: Peter Johnson

Stablecoin data is closely related to market sentiment and performance. According to CoinGecko data, the market value of stablecoin USDC has fallen by over 30 billion US dollars since its peak in January 2022 (56,128,605,419 US dollars), with a decline of 41.6% within the year 2023, currently standing at 25,989,247,153 US dollars, at the same level as in July 2021. The outflow of USDC from trading platforms (7-day moving average) is 16.16 million US dollars, reaching a one-month low.

As an important underlying asset in the crypto world, the introduction of LianGuaiyLianGuail stablecoin has once again brought light to the crypto world. In less than a month, the issuance of PYUSD has exceeded 40 million coins.

“The Relentless Rise of Stablecoins” is a research report co-authored by Peter Johnson, Joint Managing Director of Brevan Howard Digital, and Sai nimmagadda. Peter Johnson shared the top ten points of the report on his social media platform. BlockBeats has summarized them as follows:

1. In 2022, the settlement amount of stablecoins on-chain exceeded 11 trillion US dollars, almost catching up with the payment transaction volume of Visa (11.6 trillion US dollars) and accounting for 14% of the settlement transaction volume of the Automated Clearing House (ACH) and over 1% of the settlement transaction volume of the Federal Reserve Wire Network (Fedwire) in the United States.

2. Over 25 million blockchain addresses hold stablecoins worth more than 1 US dollar. About 80%, or nearly 20 million addresses, hold stablecoins worth between 1 US dollar and 100 US dollars. To give you a sense of scale, if a US bank has 25 million accounts, it would become the fifth largest bank in the United States in terms of account numbers.

3. Approximately 5 million blockchain addresses send stablecoins on a weekly basis, which provides a very rough proxy indicator for global users’ regular interaction with stablecoins.

4. The use of stablecoins has decoupled from the trading volume of cryptocurrency exchanges, indicating that a significant amount of stablecoin trading volume may be driven by non-trading/speculative activities. Since December 2021, the trading volume of centralized exchanges has declined by 64%, and the trading volume of decentralized exchanges has declined by 60%. During this period, the trading volume of stablecoins only decreased by 11%, while the number of active stablecoin addresses and the weekly stablecoin trading volume increased by over 25%.

5. Among the approximately 5 million weekly active stablecoin addresses, about 75% of the transaction volume does not exceed 1,000 US dollars per week, indicating that small and retail users may account for the majority of stablecoin users.

6. The supply of stablecoins was less than 3 billion US dollars five years ago, and now it has exceeded 125 billion US dollars (peaking at over 160 billion US dollars), showing strong resilience to risks. Compared to the total market value of the crypto market, the market value of stablecoins has fallen by about 24% from its peak, while the total market value of the crypto market has fallen by about 57%.

7. Less than one-third of stablecoins are stored on trading platforms, with the majority being held in externally owned accounts (not on trading platforms or smart contracts).

8. Most stablecoin activity is conducted using Tether (USDT), which accounts for 69% of stablecoin supply, 80% of weekly active addresses since the beginning of the year, 75% of trades, and 55% of trading volume.

9. The majority of stablecoin activity occurs on Tron and BSC. As of now, Tron and BSC collectively account for 77% of weekly active addresses, 75% of trades, and 41% of trading volume.

10. On average, the Ethereum blockchain is primarily used for higher-value transactions. Although the Ethereum blockchain only represents 6% of active wallets and 3% of trades, it accounts for 55% of stablecoin supply, and nearly 50% of stablecoin USD trading volume settles on the Ethereum blockchain each week.

With the continuous rise of stablecoins, we are still in the early stages of global stablecoin adoption. It is expected that the circulating supply of stablecoins will grow to trillions of dollars in the coming years, with annual transaction volumes reaching trillions of dollars as well. Additionally, stablecoins will increasingly provide financial services to the global unbanked population, offering them a way to escape high inflation currencies and sparking innovation based on these new global open network currencies.

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