utopia

Welcome to the /utopia channel folks :)

One of the best research papers on stablecoins that I've read this past year is from the Brevan Howard team here: https://digify.com/a/#/f/p/ef09be008ee64ab68bda4f0a558302a2.

Here's 6 learnings from the /utopia team - I wrote it in the replies below.

1. A lot of addresses transact between 1 to 1k in weekly volume - 66% of active addresses which we suspect is probably retail. 

2. We've been worried that stablecoin volume is primarily CEX related, but it looks like stablecoin volume has been disconnected from CEX trading volume, so alot of grassroots adoption here.

3. Stablecoin volume and market cap has also been largely resilient compared to CEX volume, DEX volume, total crypto market cap. Plus a lot of stable coins are held in EOAs. This could indicate that people aren’t just using stables to speculate in crypto, but using it for genuine banking purposes.

TLDR: Stablecoins are likely growing not due to speculation but for its financial utility. Since 1) more people are using stables off of exchanges and 2) volume has been resilient compared to CEX and DEX volume and 3) since stable market cap is resilient compared to crypto market cap.

4. Stablecoin usage has been growing likely from retail or common people/SMBs doing small transaction and not due to CEX or institutions moving large money.

5. Stablecoins are getting off of CEXs and more into EOAs.