“The benefit of DeFi is clearly a funnel into a lot of stablecoins,” said Nic Carter of Coin Metrics.
The proliferation of DeFi protocols and the demand for tokens for liquidity could contribute to the source of stablecoins.
According to a tweet on September 3 from the co-founder Coin Metrics, Nic Carter, the total current capital of stablecoin Binance USD (BUSD), Dai (DAI), HUSD, Paxos Standard Token (PAX), USD Coin (USDC), USDK, Tether (USDT), USDT_ETH and USDT_TRX have increased about $ 100 million per day for the past two months.
Carter says: “Everyone is very excited about DeFi, no one pointed out that stablecoins have increased by $ 100 million / day since mid-July.” DeFi’s yields / interest rates are clearly a funnel for a lot of stablecoins. “
Stablecoins are becoming very popular among the tokens used in liquidity services for DeFi protocols. DAI and USDC are also the most led stablecoins to the Compound protocol, and are also the most borrowed stablecoins in the Aave.
However, Tether still holds 80% dominance in the stablecoin market. According to data from CoinMarketCap, Tether’s total market capitalization has increased from $ 9.2 billion on July 15 to more than $ 13.7 billion as of today, up almost 50 percent. USDT’s trading volume has grown by around 150% over the same period, from $ 21.9 billion to over $ 54 billion so far.
According to Cointelegraph
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