We've been seeing new developments about stablecoins almost every day lately.
Lately stablecoins manage to make their names feel almost daily. Stablecoins ' on-chain activity has increased by 800% in the past 12 months, according to the latest information revealed by market information firm Tokenanalyst.
In fact, this growth is not surprising given the overall growth of Tether (USDT),known as the basis of stablecoins. It should be noted that USDT, which is thought to represent a common value for all stablecoins, ranks fourth in terms of market volume after Bitcoin (BTC),Ethereum and (ETH) and Ripple (XRP).
Last year, stablecoin, worth $ 290 billion, carried out on-chain activities, according to data revealed. In April March 2019, the value transferred was $ 6.2 billion, while in March 2020, that figure reached $ 50.9 billion.
Dai and DeFi Ecocitemia
Despite the growth of the DeFi industry, more than half of on-chain activity involves central exchanges. In fact, activities related to the exchanges take place five times more through DeFi than others.
Of the three stablecoin analyzed, on the other hand, the last one in Tether (USDT),USDC (USDC) and Dai (Dai) are 88% active in on-chain activities and are described as the most “decentralized”. Because Dai itself was founded on a DeFi protocol. On the other hand, 62% of Tether's activity involves central exchanges.
Besides these, the availability of various stablecoins is useful for crypto investors as it provides a “parking” mechanism to protect their fortunes from market volatility. Cash out is an alternative strategy. However, with stablecoins, risks are reduced without the need for investors to move in and out of the market continuously. This option is important for investors who find the constant in and out of the market tiresome and uncomfortable.
In addition to these, the amount transferred to stablecoins up to $ 7.6 billion was one of the items on the agenda recently.