Stablecoin Market Report: Market value continues to grow, but the inflow rate has slowed down significantly

Original author: BitU Protocol

BitU Protocol today released its latest Stablecoin Market Review — September 2024, taking an in-depth look at the evolving stablecoin landscape and its interactions with major crypto assets. The report highlights important market trends, stablecoin performance, and key correlations that impact the broader crypto ecosystem.

Over the past year, the market capitalization of stablecoins has continued to grow, driving key market trends. This review explores the remarkable performance of major stablecoins such as USDT, USDC and DAI, while also focusing on fast-rising players such as PYUSD , USDe , BitU 그리고 BUIDL .

Read and download the report for free:

• English: https://docsend.com/v/g63d 5/stablecoin_overview_sept2024_en

• Chinese: https://docsend.com/v/g63d 5/stablecoin_overview_sept2024_cn

Stablecoins continue to flow in, but risk assets have fallen instead of rising recently

Data Source: CoinGecko, Defillama

• Over the past year, the market value of stablecoins has been increasing. The inflow of funds is also the core reason for the rise in the pr얼음 of Crypto assets. BTC has increased by nearly 122% in the past year, while ETH is slightly lower, with an increase of 48.52%.

• However, in recent times, the inflow of stablecoins has slowed down significantly , but it is still growing . However, as m일체 포함nstream assets, the prices of BTC and ETH have not increased with the inflow of stablecoins, but have fallen instead.

• BTC has fallen by about 10% in the past 120 days, while ETH has fallen by nearly 22%. In the past two months, ETH has fallen even more, by more than 26%. Bitcoin has recovered slightly, falling by 4.8%.

DAI has no volatility, while PYUSD, USDe, BUIDL, etc. have grown rapidly this year

Data Source: CoinGecko, DefiLlama

• Apart from USDT and USDC, DAI, as the third largest and largest decentralized stablecoin, has seen little change in its market value over the past year.

• The stablecoins that have grown rapidly in the past period are PYUSD, USDe, FDUSD and USDY. PYUSD has increased its market value by 16532% in the past year, and has maintained a good growth momentum recently. USDe has increased by 3151% since the beginning of this year, but has been greatly affected by the market recently, and its market value has fallen significantly.

• FDUSD, as a substitute for BUSD, has also grown by 547% in the past year with the support of Binance. USDY, as one of the leaders of RWA, has also grown rapidly this year. BUIDL, as the current leader of RWA, has a market value of more than $500 M.

• 주목할 가치가 있는 것은 BUIDL is a security, which is different from other stablecoins.

The total number of stablecoins is close to 200, and the top five account for more than 96% of the market capitalization

Data Source: DefiLlama

There are currently 193 stablecoins of various sizes in the Crypto market, most of which have a market value of less than $100 M, and only 5 stablecoins have a market value of more than $1 billion.

These five stablecoins, which account for 2.6% of the total number, account for 96.11% of the total market value of stablecoins.

Most of the top stablecoins are backed by fiat currencies

Data Source: DefiLlama

There are only 17 stablecoins with a market capitalization greater than 100M USD, but these stablecoins have a market share of nearly 99%. Of these 17 stablecoins, 10 are backed by fiat currencies, and the remaining 7 are backed by Crypto assets.

In terms of market capitalization, stablecoins backed by fiat currencies account for 94.16%, and stablecoins backed by crypto assets account for 5.84%.

Stablecoins on ETH and TRON are comparable in size

Data Source: DefiLlama

• In terms of different ecosystem distribution, USDT and USDC have the widest layout, and are issued on nearly 80 L1/L2. Next is DAI, while other stablecoins focus on relatively fewer ecosystems.

• In terms of the ecosystem itself, ETH is undoubtedly the largest stablecoin issuance ecosystem in terms of scale and variety, followed by TRON. The two leading ecosystems account for 48.5% and 35.4% of the stablecoin issuance scale.

• Of course, it should be noted that all stablecoins on TRON are basically USDT, while ETH or other smaller ecosystems have more diversity in terms of stablecoin types.

Top Gainers: The need for income is higher than the need for trading

Data Source: DefiLlama

• So far this year, the top five stablecoins with a market value of more than $10M and a faster growth rate include: USDe, USDY, BITU, USD+, PYUSD.

• These five projects have one thing in common: users can earn stable risk-free returns by holding or staking these stablecoins in designated contracts.

• It is not difficult to see that the stablecoin projects that can stand out in the market are no longer simply meeting the needs of being a transaction medium, but more of a demand for stable returns.

Top Losers: Compliance and Native DeFi are the hardest hit areas

• The significant drop in BUSD’s market value is due to compliance reasons.

• In addition, half of the projects in the Top Losers are relatively native DeFi projects: LUSD (Liquidity), USX (dForce), SUSD (Synthetix), MIM (Abracadabra.money), FRAX (Frax).

New Players

USDe, PYUSD BUIDL

Data Source: DefiLlama

• In the past year, apart from the leading USDT, USDC and DAI, there are three projects that have grown relatively rapidly, namely USDe, PYUSD and BUIDL.

• Among them, USDe is a stablecoin issued by Ethena Labs. The value support of the stablecoin comes from the combination of ETH (LST asset) spot and ETH short position. And it can enjoy the benefits of market basis arbitrage strategy based on centralized exchanges and ETH PoS benefits.

• In principle, BUIDL cannot be completely regarded as a stablecoin, but rather as a security . BUIDL is just a certificate issued on the chain based on the tokenization of U.S. Treasury assets managed by BlackRock . At the same time, due to the trust endorsement of BlackRock, BUIDL has become one of the largest RWA Crypto assets. Its underlying income source is the income of U.S. Treasury bonds.

• Another fast-growing stablecoin is PYUSD, launched by the famous payment 회사 Paypal. Unlike the other two assets, which are both on ETH, PYUSDs recent growth has been on the Solana chain. PYUSD provides nearly $1 million in revenue support every week.

USDe

Data Source: 토큰Terminal

• USDes income comes from: basis arbitrage and PoS income of collateral assets.

• The table is the Financial Statements of the USDe project, and the data source is Tokenterminal.

• Revenue refers to the total revenue data, Expense refers to the amount of revenue distributed to users (usually sUSDe holders), and the rest is the profit that belongs to the team.

• USDe grew rapidly at the beginning of this year. At that time, the annualized return on funding rate arbitrage of mainstream currencies was extremely high, and the APY return in some months could even exceed 40%. USDe also benefited greatly from this and earned a lot of income using collateral. After deducting the remaining part of the team , the protocol can still provide a very high APY for USDes pledge users.

• But as the market cooled, USDes performance was mediocre. After growing larger, its earnings data was not as good as before.

• Currently, USDes staking yield is only ~ 4%. In comparison, ETHs staking yield is about 3%.

• Of course, after the success of USDe, many similar projects have emerged. However, the problem of revenue source is difficult to solve in a down market, which means that projects that can solve this problem will stand out, and more importantly: sustainable 개발.

BUIDL

• The manager of the BUIDL fund is BlackRock, which means that after investors invest in this fund with US dollars, the investors US dollars are handed over to BlackRock for management, so the investors real counterparty is BlackRock.

• 동시에, Securitize, a company invested by BlackRock, is responsible for cooperating with BlackRock to issue BUIDL Tokens on the chain and transfer the Tokens to investors. In addition to the management of BUIDL Tokens on the chain, Securitize can sell BUIDL to investors because it is a company registered with the SEC, which means it can attract customers on its own.

• BUIDL Token is a security, not a stablecoin.

• Investment in BUIDL Token needs to meet relevant compliance conditions. In addition, BUIDL Token cannot currently participate freely in on-chain applications like other stablecoins.

PYUSD

• The core reason for the rapid growth of PYUSD is its official subsidized PYUSD rewards, which provide $900,000 per week. This allows the APY of deposits alone to reach double digits, close to 20% at high times.

• Unlike other stablecoins, more than 60% of PYUSD’s issuance is on the Solana chain.

• The problem with PYUSD Minalin is very simple. When the subsidy rewards are reduced or disappear , if there is not enough hard scenario support, can PYUSD maintain its current growth and scale?

BITU: A New Paradigm in Onchain Stability and Credit

• BitU Protocol is another stablecoin-related protocol that has grown rapidly recently, with a current TVL of around $20 M. After its launch, the yield of BITU remained stable, and users enjoyed this yield by staking BITU.

• BitU Protocol is a decentralized credit network and full-featured exchange powered by the overcollateralized $BITU stablecoin. Users can stake $BITU to earn real yield and access deep liquidity across many markets from a unified experience.

• BitU Protocol enables users to mint $BITU, a safe and robust USD-pegged stablecoin designed to provide users with stable returns by minimizing volatility risk. Users can stake $BITU and receive $sBITU to earn real returns. $BITU can also be used as collateral on the Universal Exchange, which provides deep liquidity to multiple centralized exchanges from a single trading terminal.

• As mentioned before, the most important ability of a stablecoin that can generate income is the authenticity, stability and sustainability of the income. In addition to Basis Trading , BitU Protocols income source also includes in-house lending . LTP, one of the largest Crypto Prime Brokers in the market, is BitUs partner in this area. This ensures the security of assets while achieving stable income.

• Currently, the BitU protocol is only developed for institutions. Of course, ordinary users will soon be able to obtain BITU on DEX and participate in the protocol.

BitU Protocol

Correlation of Stablecoins with major market assets

Correlation between Stablecoins and BTC Prices

Data Source: CoinGecko, Defillama

• The market value of BTC and USDT has been highly correlated most of the time. This also confirms that the inflow of stablecoins ~이다 one of the important factors driving the rise in BTC prices.

• The negative correlation in 2023 H1 was mainly due to the impact of Silicon Valley Banks bankruptcy filing on USDC, which affected the correlation between the overall stablecoin and BTC market value in the first half of 2023.

• Generally, when the market is good, the correlation between the two is higher than when the market is bad.

• In recent times, the correlation between USDT and BTC in 2024 H2 has decreased significantly. This may be partly because the data for 2024 H2 is only available up to the end of August.

Correlation between Stablecoins and ETH Price

Data Source: CoinGecko, Defillama

• Similar to the case of BTC, the correlation between ETH’s price and USDT’s market capitalization is high most of the time.

• When the market is bad, the liquidity of both is obviously worse than when the market is good (2021 H 2, 2022 H 1, 2023 H 2).

• Data from 2024 H2 as of the end of August shows that the correlation between ETH and stablecoin market capitalization is negative. The market capitalization of stablecoins continues to grow, but the market capitalization/price of ETH does not have this trend, and the inflow of stablecoins has not entered the ETH market.

Correlation between Stablecoins and ALTs

Data Source: CoinGecko, Defillama

• ALTs refers to the total market value of Crypto excluding BTC, ETH and the total market value of currencies other than stablecoins.

• ALTs show a similar trend to BTC and ETH, but the correlation coefficient is not as obvious as the two. One of the important reasons may be that many ALTs themselves are not traded with stablecoins as the main pair. Instead , they are matched with the chains native token to form a liquidity pool on the chain.

• Data from 2024 H2 as of the end of August still shows a negative correlation between ALTs and stablecoin market capitalization.

Correlations between different asset classes in the Crypto market

Data Source: CoinGecko, Defillama, BitU

• Crypto refers to the total market value of Crypto

• BTC ETH USDC USDT are the total market value of these four assets

• Stablecoins refers to the total market value of stablecoin assets

• ALT_Stablecoins refers to the total market value of all stablecoins except USDT and USDC

• ALTs refers to the total market value of Crypto excluding BTC, ETH and all stablecoins.

About BitU Protocol

The BitU Protocol is a decentralized credit network and all-in-one exchange powered by the overcollateralized $BITU stablecoin that can be staked for real yield. Access deep liquidity across numerous markets through a single, unified experience.

The BitU protocol allows users to mint $BITU, a secure and resilient USD-pegged stablecoin designed to provide reliable yield with minimal volatility risk. Users can stake $BITU and receive $sBITU for real yield. $BITU can also be used as collateral on a universal trading hub that provides deep liquidity to a variety of centralized exchanges through a single trading terminal.

• 웹사이트: bitu.io

• 트위터: x.com/BitU_Protocol

• Discord: discord.com/invite/4 bRBGvCTan

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This article is sourced from the internet: Stablecoin Market Report: Market value continues to grow, but the inflow rate has slowed down significantly

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