Try Quests to earn cryptoStablecoin Trends on Uniswap
In this dashboard I will be describing the use of stablecoins on Uniswap, analysing any growth or decline, in addition to looking at the number of swaps & transaction volume.
A stablecoin is an asset pegged to a currency with the most popular stablecoins being pegged to the US dollar. Traders utilise stablecoins as they are generally less volatile than cryptocurrencies, they can also offer an easy way for traders to see the dollar value of assets that are not currently tracked by wallets. Stablecoins can also be staked where investors can earn interest or yield.
Let's take a look at the different stable coins I will be analysing today.
USDC - US Dollar Coin
DAI - Decentralized stablecoin created by MakerDAO
BUSD - Binance US Dollar a partnership between Binance and Paxos
USDT - US Dollar Tether issued by the company Tether owned by Bitfinex
UST - US Dollar Terra, scalable stablecoin on the Terra blockchain
We can see the Avg total value locked in each stablecoin daily, USDC has maintained a lead in total value locked since may 23rd. With it's lead in total value locked being much clearer than in the number of transactions. USDT has gone through some legal issues with those behind it being ordered to pay fines due to disrepencies with the dollar backing of the coin in October 2021, during this time period we can see an increase in the avg total value locked of DAI could investors have been anticipating more adoption of DAI?
Since then apart from a short period this year, USDT has maintained a lead over DAI in TVL.
Both BUSD & UST have lower value locked when compared to the other 3 stabelcoins. Something worth noting is that in the new year with TVL being in access of 1 million something not seen in 2021.
As mentioned both BUSD and UST have strong associations with their respective blockchains, which could play a role in their usage on the Ethereum blockchain.
In the above graph we see the volume of transactions across the top 5 stable coins. DAI was a close competitor for number of transactions until Jun 22nd 2021 where we see a clear increase in transactions in both USDT and USDC. Since then both coins have had the majority of transactions when it comes to stablecoins.
In the beginning USDT saw strong growth with the coin leading in transactions from May 9th to May 12th.
DAI's transactions have seen a decline since it heights on Jun 26th, with transactions dropping into the hundreds in January this year.
We can see that both coins UST and BUSD which are associated with their blockchains, Luna and BInance respectively have struggled to gain much adoption on the Etheruem blockchain.
in 2022 USDC has been a clear leader in the number of transactions with no days where a Stable coin has exceeded the level of transactions on Uniswap.
• Analyse the number of stablecoin transactions across all versions of Uniswap.
• Anayslse the average TVL daily on Uniswap.
The 3 largest stable coins in terms of avg total value locked per day and number of transactions are USDC, USDT & DIA. DIA had a similar amount of transactions & average total value locked to USDC and USDT when they were first available on Uniswap. USDC and USDT have maintained the majority of transactions. BUSD and UST are both stablecoins associated with their respective blockchains(Binance and Terra) have a much lower level of transactions & average total value locked in comparison to the 3 most popular stable coins.