The value of stablecoins on Ethereum (ETH) and TRON (TRX) have shown contrasting trends in recent times, with Ethereum experiencing a decline while TRON has seen significant growth. A recent report from Sixdegree Lab highlights these changes in supply and market value.
Stablecoins on Ethereum
The supply of stablecoins on Ethereum has been steadily decreasing since 2022. It has dropped from its peak of $100 billion to $66 billion, marking a 34% decline. This decline is contrary to the overall market price trend, as the total market value of stablecoins has not seen a significant increase despite the recent bull market. Currently, the total market value stands at $129.5 billion, representing a decline of 31% compared to its peak value of $188 billion.
- Tether (USDT) holds the largest market share at 56.3%
- USD Coin (USDC) is second with a market share of 30.5%
- DAI has a market share of 5.07%
“Stablecoins have become the foundation of the cryptocurrency market. They are the core ingredient in virtually all DeFi applications. Without stablecoins, overall trading volume and liquidity in the crypto market would likely drop 75%.” – William Quigley, Co-founder of Tether
Stablecoins on TRON
In contrast to Ethereum, stablecoin supply on TRON has followed an upward trajectory. It has grown from $31 billion in 2022 to $48.9 billion, representing an impressive increase of 57.7%. This growth aligns with the overall market price trend.
Amongst the stablecoins on TRON:
- Tether (USDT) has the highest market share at 56.3%
- USD Coin (USDC) holds a market share of 30.5%
- DAI accounts for 5.07% of the market share
These three stablecoins have a combined value of $40.03 billion, $21.7 billion, and $3.6 billion, respectively.
Addresses holding over 100,000 stablecoins on TRON represent around 0.562% of addresses but contribute a substantial 87.6% to the total stablecoin holdings. Interestingly, approximately 60% of the stablecoins held by these top addresses remain dormant. These addresses are either considered reserve addresses with a stablecoin expenditure to income ratio below 0.2, or inactive addresses that have not engaged in any stablecoin transactions within the past 180 days.
Stablecoins are a vital component of the cryptocurrency market and play a significant role in the day-to-day operations of the industry. They act as a bridge between traditional finance and cryptocurrencies, enabling seamless transactions and facilitating liquidity. Their importance is highlighted by the fact that stablecoins are the foundation of DeFi applications, contributing to overall trading volume and market liquidity.
