Stablecoin Value Falls Sharply as Bulls Run

Crypto News – Sixdegree’s analysis indicates that stablecoins‘ value has not increased significantly during the current bull market. Slightly less than the $139 billion reported in December 2022, their current total worth is $129.5 billion.

Stablecoin Value Falls Sharply as Bulls Run

This pattern can be linked to the divergent advances in Ethereum and Tron, two significant blockchain systems. The value of the former has significantly decreased, falling by 34% since 2022 to a current total of $69.4 billion in stablecoins. On the other hand, over the same time frame, the Tron stablecoin value has increased by 57.7%.

Just 5.5% of Ethereum’s stablecoins are held in decentralized finance (DeFi) protocols, compared to 30% in centralized exchanges (CEXes) and half in personal wallets. Compared to January 2022, when DeFi protocols held over 25% of Ethereum’s stablecoins, this is an enormous shift.

Tron‘s market dynamics, however, present a different story. About 30% of its stablecoins are stored in personal wallets, 0.2% are in DeFi protocols, and the rest, about 70%, are in CEXes. Compared to Ethereum, this distribution points to a different kind of user behavior on Tron, one that is more oriented toward personal wallet storage.

Nearly 40% of the 5 million Stablecoin Users Choose TRON This Year

Many causes contributed to the significant increase in stablecoin value on the TRON network in 2023.

With around 40% of the 5 million monthly stablecoin users choosing TRON in the first half of 2023, the platform’s growing user base was one significant factor. Transaction volumes amounted to $70 billion weekly as a result of this preference. It is worth noting that TRON’s low transaction costs and fast speeds are particularly attractive in emerging economies, such as Latin American countries, where high rates of inflation, such as Argentina, are prevalent.