New Trends in the Stablecoin Ecosystem: The Rise of Distributed Value and Volume Surge to $600 Billion

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The stablecoin ecosystem enters a new phase: from issuance to distribution

Stablecoins have evolved from experimental products into indispensable financial tools, with a market capitalization of $240 billion and an annual trading volume of $3.1 trillion. However, behind these numbers lie some phenomena that are worth pondering.

"False Prosperity" Behind $240 Billion Stablecoin: 31% of Transaction Volume Comes from Bots, 99% of Wallets Hold Less than $10,000

Main Trends

  1. Value is shifting from issuers to distributors. Circle paid $900 million to distributors like Coinbase in 2023, accounting for more than half of its revenue, to attract users to use USDC.

  2. Trading volume data can be misleading. 31% of the trading volume comes from high-frequency operations by MEV bots, rather than actual human activity.

  3. Wealth is highly concentrated. Although there are 150 million stablecoin wallets, 99% of them have a balance of less than $10,000. Only 20,000 unassigned wallets control $76 billion, accounting for 32% of the total supply.

  4. The real explosive growth occurred in the past 6 months. Since the summer of 2023, DeFi stablecoin trading volume has soared from $100 billion to $600 billion. During the same period, meme coin trading generated $500 billion in stablecoin flow.

"False Prosperity" Behind $240 Billion Stablecoin: 31% of Trading Volume Comes from Bots, 99% of Wallets Hold Less than $10,000

Main Use Case Analysis

centralized exchange ( CEX )

  • Accounts for 27% of the total supply
  • Accounted for 11% of the total trading volume
  • Reserve income of 3 billion USD

On-chain activities of CEX mainly reflect deposits and withdrawals, inter-exchange transfers, etc., rather than internal transactions.

240 billion stablecoin behind "false prosperity": 31% of trading volume comes from robots, 99% of wallets hold less than 10,000 dollars

Decentralized Finance ( DeFi )

  • Account for 11% of the total supply
  • Accounts for 21% of the total trading volume.
  • Reserve income of 1.1 billion USD

DeFi stablecoins are mainly used for DEX, lending markets, CDPs, etc. In the past 6 months, trading volume has increased from 100 billion USD to over 600 billion USD.

The "false prosperity" behind the $240 billion stablecoin: 31% of trading volume comes from bots, and 99% of wallets hold less than $10,000

MEV

  • Less than 1% of total supply
  • Accounted for 31% of total trading volume

The high-frequency operations of MEV bots lead to an excessively high proportion of on-chain transaction volume, often reusing the same funds.

"False Prosperity" Behind $240 Billion Stablecoin: 31% of Trading Volume Comes from Bots, 99% of Wallets Have Less Than $10,000

unassigned wallet

  • Account for 54% of the total supply
  • Account for 35% of the total trading volume
  • Reserve income of 5.6 billion USD

These wallets may represent retail investors, unidentified institutions, startups, etc., covering some of the most promising emerging use cases.

The "false prosperity" behind the $240 billion stablecoin: 31% of the trading volume comes from bots, and 99% of wallets hold less than $10,000

Future Outlook

The stablecoin ecosystem is shifting from focusing on issuance to emphasizing distribution and application. The future belongs to those builders who create applications, infrastructure, and user experiences. With clear regulations and the emergence of user-friendly applications, stablecoins are expected to experience exponential growth, becoming the cornerstone of global finance.

"False Prosperity" Behind $240 Billion Stablecoin: 31% of Trading Volume Comes from Bots, 99% of Wallets Have Less Than $10,000

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StrawberryIcevip
· 12h ago
Gained insight, Bots also mine.
View OriginalReply0
UncommonNPCvip
· 13h ago
Bots are a bit competitive.
View OriginalReply0
RektRecordervip
· 07-11 15:17
This is basically all traded by Bots.
View OriginalReply0
OfflineValidatorvip
· 07-10 19:18
At first glance, it's just bull; it's all done by Bots.
View OriginalReply0
BlockDetectivevip
· 07-09 07:33
Can you really understand over 600 billion in volume?
View OriginalReply0
OnChainDetectivevip
· 07-09 07:32
Late at night, I found that most of the wallets on-chain are poor folks... It seems I'm the only one keeping an eye on those few big players.
View OriginalReply0
PrivateKeyParanoiavip
· 07-09 07:30
Retail investors will never be slaves.
View OriginalReply0
MintMastervip
· 07-09 07:30
There are quite a few pro small traders.
View OriginalReply0
LiquidationWizardvip
· 07-09 07:29
Bots have truly supported this market.
View OriginalReply0
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