Counting 7 Stablecoins: Nearly 600 additional issuances this year, USDT over-the-counter premium over 3%

Recently, the price of OTC USDT has continued to rise. According to the statistics of Coin, as of April 7, the off-market price of USDT has reached 6.76 yuan, which is a premium of about 3.35% compared with the exchange rate of USD to RMB. In the past week, the off-market price of USDT has always been higher than 6.65 yuan, with a weekly increase of about 1.50%, reaching a peak of 6.79 yuan. The price of over-the-counter USDT also showed a significant premium over the exchange rate between the US dollar and the RMB, and the premium showed a significant upward trend. The average premium in the latest week was about 2.59%, and the highest reached 3.43%.

Is the sustained high premium level of OTC stablecoins due to insufficient supply of stablecoins or strong demand in the stablecoin market? In order to observe the stablecoin market trends behind this phenomenon, PAData analyzed the market data and on-chain data of USDT, USDC, BUSD, DAI, PAX, HUSD, and GUSD, seven USD stablecoins with large market capitalizations, and found that:

1) This year, the supply of stablecoins in US dollars is sufficient, and the expansion trend is obvious. A total of 592 additional issuances have been issued, and the total market value has increased by 35.2 billion US dollars, an increase of 127.28%. This also means that the expansion rate of stablecoins this year has exceeded the rate of increase in the price of Bitcoin, and the supply of stablecoins basically matches the market trend.

Italian lawmakers approve 26% capital gains tax on cryptocurrencies: Golden Finance reports that cryptocurrency traders will start paying Italy's 26% capital gains tax from 2023. Italian Prime Minister Giorgia Meloni's expansionary 2023 budget, finalized before the end of the year, includes 21 billion euros ($22.3 billion) in tax breaks to help businesses and households cope with the ongoing energy crisis. The 387-page budget legitimizes cryptoassets by defining them as “a digital representation of value or rights that can be transmitted and stored electronically using distributed ledger technology or similar technology.” The bill stipulates that a 26% tax rate applies to gains from crypto transactions if the transaction in crypto assets exceeds €2,000 per tax period. The new bill also sets an "alternative income tax" for investors at 14% of the value of holding assets (rather than purchase cost or value) as of 1 January 2023. [2022/12/31 22:17:31]

2) On the other hand, the market demand for various USD stablecoins is also increasing this year, and this demand may mainly come from DeFi mining pledges. This year, the average monthly on-chain transaction volume of US dollar stablecoins has reached 307 billion US dollars (assuming that the stablecoins are pegged 1:1 to the US dollar), which has increased by 200% compared with last year's average monthly on-chain transaction volume. However, the turnover rate of stablecoins fell from 63% to 28% this year, and the percentage of stablecoins held by exchanges as a percentage of each stablecoin supply fell from 27% to 17%. This year, the percentage of stablecoins in smart contracts to the supply of each stablecoin has risen from 34% to 50%, which shows that the main investors holding stablecoins are increasingly inclined to use USD stablecoins as an asset for liquidity pairs Make a mining pledge.

Japan's SBI's Encryption Unit Receives Capital Markets License in Singapore: SBI Digital Markets, a subsidiary of Japanese financial services giant SBI Holdings' digital asset division, has received a Capital Markets Services (CMS) license to offer securities in Singapore, according to news on September 15. and futures trading services. SBI Digital Markets plans to launch an institutional-grade digital asset securities platform that will enable traditional financial service operators to “capture the growth opportunities driven by the crypto market.”

It is reported that SBI Digital Markets was established in 2020 to become an encryption service provider, providing a series of services, including the issuance and custody of virtual assets. (CoinDesk) [2022/9/15 6:58:59]

3) Changes in the supply and demand structure of stablecoins have reduced the impact on market conditions of whether or not to issue additional issuances, and the size of the additional issuances. Investors need to consider more about the possible impact of the number of stablecoins locked in smart contracts on the market.

As of April 7, the total market value of the seven USD stablecoins USDT, USDC, BUSD, DAI, PAX, HUSD, and GUSD has reached 62.91 billion US dollars. The average market value in April was approximately US$61.73 billion, an increase of 92.31% from the average market value in January this year, and a year-on-year increase of 712.24% from the average market value in April last year, which is equivalent to an increase of about 8 times. It can be seen that the US dollar stable currency has achieved rapid and large-scale expansion in the near future, and this expansion trend is still continuing.

The Mogul Productions project Discord server was attacked: Jinse Finance reported that according to CertiK monitoring, the Mogul Productions project Discord server was attacked. Community users are requested not to click, mint or approve any transactions. [2022/8/11 12:18:06]

The monthly average market value of USDT (including all kinds of USDT) with the largest market value has increased by 75.39% this year, and its share in the market value of major USD stablecoins has dropped from 74.80% to 68.22%. USDT's lost market share was "divided" by other USD stablecoins. Among them, the market value of GUSD, PAX and BUSD has increased by a large margin this year, reaching 677%, 300% and 229% respectively, but the market value of BUSD and USDC has increased the most, and the two have increased by 2.6 percentage points and 1.9 percentage points respectively. percentage points, becoming the other two major U.S. dollar stablecoins second only to USDT. the

Since the U.S. dollar stablecoin is anchored to the U.S. dollar 1:1, its expansion can only be driven by additional issuance. According to statistics, since the beginning of this year, the seven stablecoins of USDT, USDC, BUSD, DAI, PAX, HUSD, and GUSD have been issued 592 times and destroyed 507 times.

The World Economic Forum is recruiting the person in charge of blockchain and digital assets: On July 21, the World Economic Forum (WEF) is recruiting the person in charge of blockchain and digital assets. According to the job description, through its global network of Centers for the Fourth Industrial Revolution (C4IR), the World Economic Forum brings together leaders from business, government, international organizations, academia and civil society through high-level conferences, research networks, task forces and Digital collaboration to shape the global technology agenda. The C4IR global network includes centers in 14 countries around the world. As part of C4IR, the blockchain and digital asset platform focuses on these and related topics, including cryptocurrencies, CBDCs, stablecoins and Web 3.0, among others. This role oversees and collaborates on multi-stakeholder projects to support the development and diffusion of innovative policy and governance approaches in these areas globally. (Finbold)[2022/7/21 2:28:54]

Among them, USDT is mainly issued one-way. The four types of USDT have been issued 42 times this year, and only destroyed 2 times. ERC20-USDT is only issued and not destroyed. It can be seen that USDT is increasingly turning to Ethereum and Tron. The earliest USDT based on the Bitcoin Omni network has not even seen additional issuance and destruction this year. In addition, the number of additional issuances and destructions of other US dollar stablecoins is basically the same. The additional issuances are basically between 85 and 100 times, and the number of destructions is basically between 70 and 100 times.

KiKi Finance announced the completion of multi-million dollar angel round financing: According to official news, recently, the decentralized staking platform KiKi Finance announced the completion of multi-million dollar angel round financing. The investment institutions participating in this financing include FBG Capital, NGC Ventures, CoinSummer , GeekCartel, etc. According to the official announcement, the platform will be officially launched at 16:00 on January 19, 2022, Singapore time.

It is reported that KiKi Finance is a decentralized open source Staking protocol based on multi-chain development. Committed to revitalizing users' cold assets, aggregating Staking public chain users into one platform, integrating blockchain traffic entrances and laying out the Web3.0 ecology. [2022/1/15 8:51:26]

A large number of "money printing" of US dollar stablecoins has caused its market value to rise sharply, which has greatly increased the purchasing power of stablecoins. According to the ratio of the market value of Bitcoin to the market value of stable coins, the supply ratio of stable coins is obtained. This is an indicator to measure the purchasing power of stable coins. When this indicator is lower, it means that the purchasing power of stable coins is stronger. At this time, the expansion of stable coins The speed exceeds the rate of increase in the price of Bitcoin.

Since the beginning of this year, the supply ratio of stablecoins has generally shown a downward trend, that is, the purchasing power has strengthened. As of April 7, the stablecoin supply ratio was 17.52, a decrease of 2.03 from the beginning of this year, a slight drop of 10.38%. This year's average daily ratio is about 19.35, a slight increase of 7.80% from last year's average, and a sharp drop of 27.77% from the first quarter of last year. Overall, the current purchasing power of stablecoins is at a relatively high level in the past three years.

On the demand side, the average monthly on-chain transaction volume of the seven USD stablecoins USDT, USDC, BUSD, DAI, PAX, HUSD, and GUSD reached USD 307 billion this year (assuming that the stablecoins are pegged 1:1 to the USD), compared with last year The monthly average of US$102.1 billion for the whole year has increased by about 200%. Among them, the transaction volume on the chain reached its peak in February this year, which was about 422.6 billion US dollars. Even the on-chain transaction volume in the first week of April this year has surpassed the whole month of April last year. According to the daily average value, the on-chain transaction volume in April this year will reach about 333.4 billion US dollars.

The on-chain transaction volume of stablecoins this year is much higher than last year, but the average monthly turnover rate on the chain is almost the same as last year. The turnover rate is an indicator to measure the circulation speed of stablecoins in the network, which is the ratio of the transaction volume on the chain to the market value. According to statistics, the average monthly chain turnover rate of stablecoins this year is about 44.49%, and the average monthly value last year was about 44.78%. However, although the average value is close, since the beginning of this year, the monthly average chain turnover rate of stablecoins has shown a more obvious downward trend. If this trend continues, it is expected that the average monthly turnover rate for the whole of this year will be significantly lower than last year.

Judging from the average daily turnover rate of various USD stablecoins this year, the average turnover rate of DAI is the highest, reaching 86.81%, and the average turnover rate of USDT is the lowest, only 20.00%. The average monthly turnover rate of other stablecoins is basically distributed around 50%, USDC and BUSD exceed 52% respectively, and HUSD, GUSD and PAX are slightly lower, less than 50%. the

Judging from the changes in the proportion of US dollar stablecoins held by exchanges in the supply of each stablecoin, in the past two years, the proportion of US dollar stablecoins held by exchange addresses in the supply of various stablecoins has continued to decline. In 2019 At the beginning of the year, the average value of this proportion was still 47.02%, but by April 7 this year, the average value of this proportion was only 16.69%, a sharp drop of about 30 percentage points in three years. Moreover, this trend tends to accelerate. This year alone, the proportion of US dollar stablecoins held by exchange addresses in the supply of each stablecoin has dropped by nearly 10 percentage points.

A large number of additional stablecoins have accelerated to various smart contracts (mainly referring to various DApp contracts including DeFi). According to statistics, since 2020, the proportion of US dollar stablecoins in smart contracts to the supply of each stablecoin has changed from a basically stable situation to an accelerated upward trend. At the beginning of 2020, the average value of this proportion was only 7.21%, and by the end of 2020 At that time, the average value of this proportion rose to 28.72%. This year has also continued this upward trend. The proportion of US dollar stablecoins in smart contracts to the supply of each stablecoin has risen from 33.81% at the beginning of this year to 49.95% currently (April 7), a substantial increase of 16 percentage points above.

The market structure of stablecoins has changed, which is mainly affected by the development of the DeFi ecosystem. Since the US dollar stablecoin is currently the stablecoin with the best anchoring effect on the market, its price fluctuation is small, and the risk of participating in DeFi mining (here mainly refers to free loss) is also small. Therefore, with the prosperity and development of DeFi, investment Investors' demand for US dollar stablecoins has also increased rapidly. In this environment of structural change, whether or not stablecoins are issued, and the size of the additional issuance will have less impact on market conditions, and investors need to give more consideration to the situation of stablecoins locked in smart contracts.

Analyst | Carol Editor | Tong

Tags：

ETH