So in the past six months, which projects have become the winners of this track, and which projects have fallen into the market fodder?
Note: This article is based on the market capitalization indicator to measure the change in the size of stablecoins, involving stablecoin projects such as Tether (USDT), USDC, Binance USD, Dai, TerraUSD, TrueUSD, PAX, Liquity USD, HUSD, USDN, FEI, GUSD, Frax and sUSD, statistics are from coingecko (additional note: algorithmic stablecoin projects that cannot be anchored to $1 within 30 days are not included in the statistics of this article, in addition some stablecoin projects are not available at the beginning of the year due to their late establishment)
According to the size of the market, the current “Dragon One” position in the stablecoin market still belongs to USDT, which can only be said that its first-mover advantage is still very strong, but we can also clearly observe that the share of USDT in the stablecoin market has dropped from 68% at the beginning of the year to 57% at the moment, while USDC and Binance USD’s share of the market has decreased from 68% at the beginning of the year to 57% at the moment. The market share of USDC and Binance USD has increased significantly. Personally, I predict that by the end of this year, USDT’s share of the stablecoin market is expected to fall below 50%.
Centralized stablecoins such as Tether (USDT), USDC, Binance USD, TrueUSD and GUSD, which are collateralized by USD assets, are all showing strong growth trends, indicating that centralized stablecoins will continue to be the mainstream type of stablecoin market in the current and short to medium term (assuming no major projects crash).
In addition, exchange-led stablecoin projects such as Binance USD and GUSD saw the most prominent growth in the first half of the year, which is clearly related to the growth of these exchanges.
In contrast, decentralized types of stablecoin projects showed a polarized and mixed picture, such as Dai, TerraUSD and Liquity USD, which all experienced growth, while FEI, Frax and sUSD saw their market share decline, with Fei even experiencing a significant drop in market size, making it the worst performing of the stablecoin projects.
Let’s take a look at the specifics of each project below.
- Tether (USDT)
(Figure 4: Tether (USDT) Market Size Change)
If there were two words to describe Tether’s (USDT) performance over the past six months, they would be: steady and awkward.
Tether (USDT)’s growth curve was basically linear until May 21, and as the market cooled down, its market size growth began to slow down. In addition, Tether (USDT) has been left behind by USDC in the DeFi space, and it is one of the few centralized stablecoin projects (the other being PAX) that is currently experiencing a decline in market share.
(Figure 5: USDC market size change)
Compared to USDT, the growth of USDC is more promising, which is clearly seen from the growth curve, and in terms of news, large financial institutions like Visa support the settlement of transactions with USDC stablecoin, in addition to Coinbase as one of the initiators, which also pays an annualized 4% interest to users holding USDC, all signs indicate that the stablecoin development of USDC All signs indicate that USDC is a brighter path than USDT.
(Figure 6: Binance USD market size change)
As the chart shows, the development of Binance USD is also very eye-catching, which may have a lot to do with the rapid rise of BSC, we can see that the growth rate of Binance USD is obviously faster than USDT and USDC when the market is in the bullish stage.
(Figure 7: Dai Market Size Change)
Dai, as the current leader in the decentralized stablecoin market, has proven the viability of the over-collateralized type of stablecoin, and the project is expected to maintain good growth momentum.
(Figure 8: TerraUSD Market Size Change)
TerraUSD’s performance during the bullish phase can be considered very eye-catching, but after the market pullback, its market size started to show a small decline, but overall the performance is still good.
(Figure 8: PAX Market Size Change)
As the chart shows, PAX (Paxos Standard) is not growing as well as it should, yet its issuing company Paxos had raised $300 million in Series D funding (valued at $2.4 billion) in April this year, so what is going on? In fact, Binance USD, which has exploded in growth, is jointly issued by Paxos and Coinan, and it looks like PAX has become the little brother project of BUSD.
(Figure 9: Liquity USD Market Size Change)
As the chart shows, Liquity USD has only been around for a few months since its birth. When the market was in a bullish phase, the market size of Liquity USD grew very rapidly, and after the market cooled down, its market size saw a sharp decline, which proves that its mechanism has not yet won the trust of the market, which is also a common problem faced by all new stablecoins at present.
(Figure 10: FEI Market Size Change)
FEI is the worst of all the stablecoins mentioned in this article. As the chart shows, FEI’s market size is basically in a state of constant decline, and although FEI is currently well anchored at around $1, it is clear that the market does not approve of its design.
(Figure 11:sUSD market size change)
As the chart shows, the market performance of sUSD is also very bad, and it is clear that one DAI is sufficient for the over-collateralized type of stablecoin.
Although USDT still holds a clear lead, its market position is being strongly impacted by USDC, BUSD and other compliant stable coins, and at present, decentralized type of stable coins are still facing a huge challenge in terms of stability and scalability despite their beautiful vision. The challenges are enormous, and in this regard, it has to be said that DAI and TerraUSD are relatively more prominent.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/with-a-growth-of-over-80-billion-in-six-months-who-really-loses-and-who-wins-in-the-stablecoin-market/
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