Try Quests to earn cryptoStablecoin Dominance
After the Terra Collapse and the depeg of UST Osmosis users had to choose a new stablecoin. This dashboard will look at the popularity of the available alternatives.
Cosmos Ecosystem
Cosmos is an ever-expanding ecosystem of interoperable and sovereign blockchain apps and services, built for a decentralized future. Chains built with the Cosmos SDK have access to IBC: "Inter-Blockchain Communication" which enables chains and apps to easily interact with each other.
Osmosis
Osmosis is a blockchain that is built on the Cosmos SDK. Its main purpose is to operate a decentralized exchange (DEX) that has a considerable amount of trade volume of different IBC capable assets.
Stablecoins on Osmosis
During most of Osmosis' lifetime there was a stablecoin in the Cosmos ecosystem: Terra UST. With the collapse of Terra in mid May 2022 this stablecoin lost its peg and never recovered from there. Osmosis users now had to pick from the available alternatives: Bridged stablecoins from EVM-Chains. There are 3 stablecoins bridged using 2 different bridges (Axelar and Gravity):
- axlDAI (ibc/0CD3A0285E1341859B5E86B6AB7682F023D03E97607CCC1DC95706411D866DF7)
- DAI.grv (ibc/F292A17CF920E3462C816CBE6B042E779F676CAB59096904C4C1C966413E3DF5)
- axlUSDC (ibc/D189335C6E4A68B513C10AB227BF1C1D38C746766278BA3EEB4FB14124F1D858)
- USDC.grv (ibc/9F9B07EF9AD291167CF5700628145DE1DEB777C2CFC7907553B24446515F6D0E)
- axlUSDT (ibc/8242AD24008032E457D2E12D46588FD39FB54FB29680C6C7663D296B383C37C4)
- There is no USDT from gravity bridge
For this analysis we will combine the volume of axelar and gravity bridge tokens to USDT, USDC and DAI respectively.
USTC will also be included in the charts below.
Concluding
- Before the Terra collapse UST was the only stablecoin being used
- The other stablecoins shared < 1% of the total stablecoin volume
- After the collapse total stablecoin usage dropped significantly (~4x less)
- The volume was split up very unevenly
- USDC is the most used stablecoin ~90%
- DAI on second place with ~10%
- USDT is barely used at all
- Average swap amount related well to total volume
- USDT is used for small swaps (~$100 on average)
- DAI is used for medium sized swaps (~$350 on average)
- USDC is used for the largest swaps (~$700 on average)