- The creation of new stablecoins is accelerating.
- Tether’s USDT led the inflows during the last week. It added 2.4 billion dollars to its supply.
- Stablecoins of smaller size, like First Digital USD or Ethena USDe are also popular.
Investors have added $4.2 billion in dollar-pegged stablecoins since the beginning of this month.
The biggest stablecoin day was April 2, with $1.38 Billion worth of new coins. The following are some of the most effective ways to increase your ROI: DefiLlama’s latest show. This is the largest single-day rise since March 11, 2023.
Stablecoin production is at its highest rate since 2022 and shows no sign of slowing down.
Centralised companies create and issue stablecoins such as Circle’s USDC and Tether’s USDT. Investors can transfer US dollars to a stablecoin issuing firm through traditional banking and get an equal amount of stablecoins.
There are alternative ways of creating stablecoins. Ethena, for example, allows registered users to use assets like Lido staked Ether or Wrapped Bitcoin in order to create USDe.
Stablecoins are becoming more available. This is often seen as an improvement. bullish signal. Investors create stablecoins to be used in DeFi or as an initial point for buying other crypto currencies.
Tether dominates new stablecoin demand
Tether accounted for 2.4 billion of the $4 billion in new stablecoins that were created this month. Tether is currently the The biggest advantage of using The stablecoin issuing company has over 107 billion USDT in circulation.
Tron has issued the majority of new USDT. Tron now represents more than 56 billion dollars in USDT.
Circle’s USDC – the second largest stablecoin in circulation with 31.9 billion coins circulating – remained relatively flat and added just 0.7% of its supply to circulate.
USDT’s recent divergence from USDC is indicative of a long-term trend. USDC was close to surpassing USDT in July 2022 after USDT briefly fell below the dollar peg.
USDT recovered. Since then, the difference between the two top stablecoins have widened.
Ethena USDe & First Digital USD are popular
Two stablecoins have been a standout among the many new coins in this sector.
First Digital USD is a stablecoin that’s similar to USDC or USDT. It has grown its supply of circulating coins by 1 billion dollars since the beginning of this month. This represents a 42 percent increase.
Binance’s crypto-exchange launchpools are a major contributor to First Digital USD, or FDUSD.
Binance allows users to deposit FDUSD or BNB in its Launchpools and receive a token allocation.
Most recent Launchpool Saga was the blockchain chosen. Binance’s website shows that users have made more than $2. 8 billion Saga Launchpool: FDUSD
Ethena Labs has also noticed the increased interest in stablecoins. USD flagship product. Ethena’s users created USDe worth 620 millions since the beginning of this month. This brings the USDe total in circulation up to $2.2 billion.
USDe differs from USDT, a centralised currency pegged to the dollar. Ethena does not hold dollars, or assets that are dollar equivalents like Treasury Bills to support its stablecoin. Instead it uses contracts for futures.
The Ethena Protocol allows users to deposit Ether in order to generate USDe, which is roughly equal to the Ether value at the moment of deposit. Ethena will take a bet on a similar amount of Ether as the deposit made by users.
It creates a position that is called delta-neutral, meaning its value will remain the same regardless of whether Ether’s price rises or drops. USDe holders are able to stake their USDe in order to receive a yield on the short Ethena positions, as well as a yield for deposited Ether.
By staking USDe, users can earn 37% per year.
Tim Craig, DL News Edinburgh’s DeFi correspondent. Send us your tips by emailing tim@dlnews.com.