CoinMetrics: Daily stablecoin issuance reaches $100 million

Since mid-July, daily growth in the aggregate market capitalization of stablecoins has risen to $100 million. CoinMetrics co-founder Nic Carter drew attention to this.

everyone got so excited about DeFi no one pointed out that stablecoins have been adding $100m/day since mid Julyhttps://t.co/SM0hj7mBsp pic.twitter.com/ZGtzQOY9qL

— nic carter (@nic__carter) September 3, 2020

The chart provided by Carter, built on the issuance data of stablecoins such as Tether (USDT) across blockchains, USD Coin (USDC), Paxos Standard Token (PAX), Binance USD (BUSD), Dai (DAI), Huobi USD (HUSD) and USDK.

“Yields in the DeFi sector and interest rates are a vacuum, drawing in a multitude of stablecoins,” the expert explained as one of the reasons for the trend.

Carter concurred that the rise in popularity of DeFi protocols and demand for tokens in liquidity pools explain the surge in stablecoins supply.

Such stablecoins as DAI and USDC are among the most popular assets in the Aave and Compound protocols.

The dominant position in the sector remains held by Tether, with around an 80% share. According to CoinGecko, since July 15 the stablecoin’s market capitalization has risen from $9.85 billion to current $13.77 billion. The daily trading volume of USDT over this period jumped 2.6x—from $18.4 billion to $47.8 billion.

Bank of England Governor Andrew Bailey stated that stablecoins have great potential and can offer ‘useful advantages’. He added that coordinated international rules governing stablecoins are needed.

In July, the Financial Action Task Force (FATF), in a dedicated report, noted the need for stablecoin issuers to adhere to the organisation’s proposed requirements.

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