Our Network: Issue #44 (Part 2)

Coverage on DeFi.

Click here to read Part 1.

④ Stablecoins

Contributor: Alex Svanevik, CEO at Nansen

  • While unique USDT senders on Ethereum steadily increased during the first half of the year, from late June to October the trend has been falling. Over these last few weeks, however, we've returned to a rapid expansion of USDT senders. October 18th marked the biggest day for USDT senders since June 23rd. (Source). 

  • For a while, PAX was the 2nd biggest stablecoin in number of senders but activity was driven mainly by the ponzi scheme MMM BSC. Since peaking in May, activity has now dropped significantly. The future of Paxos may not be PAX, but in white-labeling stablecoins for other parties such as Binance (and perhaps PayPal). (Source)

  • So what are the most active stablecoin wallets? The list of top-volume addresses for the last 7 days shows it's a real mix of CeFi and DeFi. On the CeFi side, we see Binance, FTX, Paxos, Circle, Huobi, and Alameda. DeFi projects with high stablecoin volume include Aave, Compound, Curve, Harvest, Tokenlon, and Uniswap. (Source)

  • Finally, how has yield farming impacted stablecoin usage? In June, before the yield farming craze started, 70% of stablecoin transactions were smaller than $1k in size. As gas prices exploded from yield farming, the share of <$1k transactions went down to less than 50% in September. Since then, it has recovered to around 65%. (Source)   


About the editor: Spencer Noon is Head of Investments at DTC Capital.