Stablecoins Market Cap
Stablecoins market cap has continuously increased. Last May, it had a steep decrease with Terra/ Luna incident.
After that terrible reliability damage, all stablecoins market cap has decreased a bit. USDC and other small portion Stablecoins are having more portion slowly.
Token Velocity of Decentralized Stablecoins Drops
Source: CoinGecko
Token velocity for stablecoins aims to measure the frequency at which the stablecoins are spent or exchanged.
It is calculated as total volume divided by outstanding supply.This data is still not fully reliable. The volume is still so small that easily fluctuated by some of whale traders or any aggrssive profit hunters. It shows a sort of small hint of recent decentralized stablecoins' trend.
Since the beginning of this year, DAI has seen the highest token velocity among all major decentralized stablecoins. This means that DAI has consistently recorded higher volumes relative to its outstanding supply, and may indicate users’ preference of using DAI as a medium of exchange to settle transactions.
DAI shows relatively reliable moving. Having releatively longer usage history and without any remarkable reputation damage, it shows reliable moving.
Surprisingly, FEI recorded a peak in token velocity near the end of last year, reaching 0.156 on December 22nd.
It shows high fluctuaion moving. It may be required to watch it closely if it would be long lasting reliable stablecoins.
More recently, velocity for all stablecoins has dipped, as total volumes have decreased. 30-day average velocity for DAI currently stands at 0.046, down from 0.09 on June 1st. During the same period, 30-day average volume for DAI has decreased by 47% from $581 million to $306 million.
Other decentralized stablecoins have recorded similar volume and velocity profiles. For example, 30-day average velocity for LUSD currently stands at 0.015, down from 0.031 on June 1st. During the same period, 30-day average volume for LUSD has decreased by 78% from $11.9 million to $2.5 million.
Reference: Delphi Digital