March market analysis and key trends
The post Top Stablecoins Report: March Market Analysis and Top Trends appeared first on Coinpedia Fintech News.
Have you ever wondered what sustains the cryptocurrency market during such volatile times? Introducing a stablecoin that will change the game of the cryptocurrency world!
This Coinpedia guide is the key to unlocking the secrets of the best stablecoins. We will open the vaults to reveal the market’s powerful players, put price stability under the microscope, and uncover the fascinating relationship between stablecoins and the blockchains on which they operate.
Buckle up as we take a look at how stablecoins are changing on both centralized and decentralized exchanges. Is that really the future of cryptocurrency trading? Now, let’s find out.
1. Top stablecoins: A simple analysis
For a simple analysis to find the best stablecoins on the market this month, we generally consider three parameters: market capitalization, market power, and trading volume.
1.1. Top stablecoins by market capitalization
Stablecoin Market Cap Tether $103,791,045,667 USDC $32,181,228,114 Dai $4,796,620,098 First Digital USD $2,621,949,483 Ethena USDe $1,324,155,406 USDD $727,929,913 Frax $646,091,575
Among stablecoins, Tether leads with $103.8 billion, followed by USDC with $32.2 billion and Dai with $4.8 billion. First Digital USD, Ethena USDe, USDD, and Frax have lower market shares. Market capitalization reflects the total value of coins in circulation, indicating Tether’s dominance in the stablecoin market.
1.2. Top stablecoins by market power
Stablecoins market dominance (%) Tether 71.12% USDC 21.97% Dai 3.28% First Digital USD 1.79% Ethena USDe 0.90% USDD 0.50% Frax 0.44% Others 1.42%
Tether dominates the stablecoin market with 71.12% market dominance, followed by USDC with 21.97% and Dai with 3.28%. First Digital USD, Ethena USDe, USDD and Frax have smaller stakes. Market power represents the proportion of the overall stablecoin market each coin controls, highlighting Tether’s significant lead over its competitors in terms of usage and adoption.
1.3. Top stablecoins by trading volume
Stablecoins Trading Volume Tether $73,628,466,066 USDC $8,311,288,744 First Digital USD $7,807,644,491 Dai $336,879,569 Ethena USDe $52,777,020 Frax $10,049,878 USDD $7,955,212
Tether leads the stablecoins in trading volume with $73.6 billion, followed by USDC with $8.3 billion and First Digital USD with $7.8 billion. Dai, Ethena USDe, Frax and USDD have low trading volumes. Trading volume represents the total value of stablecoins exchanged on the market and reflects Tether’s liquidity advantage and active trading compared to other stablecoins.
2. Stablecoin Price Analysis: An In-Depth Overview
Tether, USD Coin, Dai, First Digital USD, Ethena USDe, USDD, FRAX, and TrueUSD are the top eight stablecoins by market capitalization at the time of writing this report.
Let’s do an in-depth price analysis focusing on these eight coins.
2.1. Stablecoin changes in one month
Stablecoin Monthly Change (%) Tether +6.64% USDC +17.17% Dai -2.71% First Digital USD -22.56% Ethena USDe +210% USDD -0.78% Frax -38.71% TrueUSD -51.58%
Ethena USDe led the change for the month with an increase of 210%, followed by USDC with +17.17% and Tether with +6.64%. TrueUSD, Frax, First Digital USD, Daui and USDD were down.
2.2. Stablecoin 1-month % discount peg
Stablecoins 1 Million% Off Peg Tether +0.30% USDC +0.60% Dai +0.30% First Digital USD -0.88% Ethena USDe -0.35% USDD -0.57% Frax -0.65% TrueUSD -3.56%
Among the top stablecoins, TrueUSD experienced the largest negative deviation from its peg at -3.56%, followed by First Digital USD at -0.88%. USDC, Tether, and Dai showed small positive deviations, while Frax, USDD, and Ethena USDe showed small negative deviations. The 1-month % discount peg reflects stability relative to the target price, indicating that the stablecoin value has deviated from the intended peg. Negative deviations from the peg are considered more dangerous for the stability of the stablecoin.
3. Stablecoins on Blockchain: A Detailed Overview
Blockchain Stablecoin Dominance USDT 69.76% USDC 21.11% DAI 3.16% FDUSD 1.5% USDe 0.89% USDD 0.49% TUSD 0.4% FRAX 0.27% Others 2.42%
In the blockchain ecosystem, USDT dominates at 69.76%, followed by USDC at 21.11% and DAI at 3.16%. FDUSD, USDe, USDD, TUSD and FRAX have smaller holdings. This dominance refers to the proportion of stablecoin transactions conducted on blockchain networks. USDT’s significant lead suggests widespread use and acceptance within blockchain networks, while USDC and DAI also maintain a significant presence.
3.1. USDT dominance on blockchain
Blockchain USDT Dominance Tron 49.82% Ethereum 41.04% BSC 3.44% Arbitrum 2% Avalanche 0.86% Others 2.84%
Among blockchains, Tron holds USDT’s share at 49.82%, followed by Ethereum at 41.04% and BSC at 3.44%. Arbitrum and Avalanche have smaller stakes, with other blockchains contributing 2.84%. USDT dominance reflects the proportion of Tether transactions occurring on each blockchain, indicating that Tron and Ethereum are the primary platforms for USDT transactions, impacting liquidity and ecosystem stability.
3.2. USD Coin’s Dominance on Blockchain
Blockchain USD Coin Dominance Ethereum 78.39% Solana 6.47% Arbitrum 3.59% Basic 2.24% BSC 1.72% Other 7.59%
Ethereum leads USD coin dominance among blockchains at 78.39%, followed by Solana at 6.47% and Arbitrum at 3.59%. Base and BSC have smaller stakes, with other blockchains contributing 7.59%. The data highlights Ethereum’s reputation as the primary platform for USDC trading, driving liquidity and ecosystem growth.
3.3. Dai’s dominance in blockchain
Blockchain Dai Dominance Ethereum 90.49% Polygon 3.33% Gnosis 1.72% Arbitrum 1.55% Fantom 0.74% Others 2.17%
Ethereum leads Dai’s dominance among blockchains at 90.49%, followed by Polygon at 3.33% and Gnosis at 1.72%. Arbitrum and Fantom have smaller stakes, with other blockchains contributing 2.17%. The data highlights Ethereum as the primary platform, promoting liquidity and stability for Dai.
3.4. Blockchain’s first digital USD dominance
Blockchain’s first digital USD dominance Ethereum 94.7% BSC 5.3%
Among blockchains, Ethereum dominates First Digital USD at 94.7%, followed by BSC at 5.3%. The data indicates that Ethereum is the primary platform facilitating the liquidity and usage of FDUSD within the ecosystem.
3.5. Ethena USDe Dominance on Blockchain
Blockchain Ethena USDe Dominance Ethereum 100% Others 0%
Ethereum has a 100% monopoly on Ethena USDe among blockchains, meaning that all Ethereum USDe transactions occur on Ethereum.
3.6. USDD Dominance on Blockchain
Blockchain USDD Dominance Tron 99.24% Ethereum 0.64% Other 0.12%
Tron dominates USDD among blockchains (99.24%) and has minimal presence on Ethereum and other blockchains. This indicates Tron’s important role in facilitating USDD transactions.
3.7. TrueUSD Dominance on Blockchain
Blockchain TrueUSD Dominance Ethereum 66.58% Tron 32.51% Avalanche 0.51% BSC 0.21% Others 0.18%
Ethereum leads TrueUSD dominance among blockchains at 66.58%, followed by Tron at 32.51%. Avalanche, BSC and others have smaller stakes. The data suggests that Ethereum and Tron are the main platforms facilitating TrueUSD trading.
3.8. Frax dominance on the blockchain
Blockchain Frax Dominance Ethereum 81.14% Arbitrum 9.26% Harmony 2.04% BSC 1.64% Moonriver 1.37% Others 4.55%
Ethereum dominates Frax among blockchains at 81.14%, followed by Arbitrum at 9.26% and Harmony at 2.04%. BSC and Moonriver hold smaller stakes, with other blockchains contributing 4.55%. The data shows that Ethereum is the primary platform driving liquidity and stability for Frax.
4. Stablecoins on exchanges: a simple analysis
Let’s examine the level of participation of stablecoins on cryptocurrency exchanges by focusing on the top three centralized and decentralized exchanges and examining whether stablecoins feature prominently within the top three trading pairs on each platform.
4.1. Stablecoins on centralized exchanges
Binance, Coinbase Exchange, and OKK are the top three centralized exchanges in terms of monthly visits, attracting 72.3 million, 43.1 million, and 27.7 million visits, respectively. Let’s analyze these three centralized exchanges.
4.1.1. Binance’s stablecoin active trading pairs
Binance Top Trading Pairs Volume % BTC/FDUSD 16.48% BTC/USDT 12.97% ETH/USDT 7.82%
Stablecoin trading pairs such as BTC/FDUSD, BTC/USDT, and ETH/USDT are among the top three trading pairs on Binance with 16.48%, 12.97%, and 7.42% respectively. This means that stablecoins play an important role in cryptocurrency exchanges.
4.1.2. Stablecoin active trading pairs on Coinbase Exchange
Coinbase Top Trading Pairs Volume % BTC/USD 33.96% ETH/USD 9.85% USDT/USD 7.07%
USDT/USD is among the top three trading pairs on Coinbase for stablecoin usage. BTC/USD leads with 33.96%, followed by ETH/USD with 9.85% and USDT/USD with 7.07%. This inclusion highlights the importance of stablecoins to Coinbase’s trading ecosystem, although to a lesser extent than fiat pairs.
4.1.3. OKK’s stablecoin active trading pairs
OKK Top Trading Pairs Volume % BTC/USDT 23.58% ETH/USDT 11.4% SOL/USDT 5.34%
Stablecoin trading pairs play a significant role in the top three pairs on the OKK exchange. BTC/USDT leads with 23.58%, followed by ETH/USDT with 11.4% and SOL/USDT with 5.34%. This signals OKK’s heavy reliance on stablecoins for liquidity trading and highlights the prominence of stablecoins in facilitating cryptocurrency trading activity.
4.2. Stablecoins on decentralized exchanges
Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum One), and Uniswap V2 (Ethereum) are the three best decentralized exchanges based on monthly visits. All three have each received over 10,000,000 monthly visits. Let’s analyze these three decentralized exchanges.
4.2.1. Stablecoin active trading pairs on Uniswap V3 (Ethereum)
Uniswap V3 (Ethereum) Top Trading Pairs Quantity WETH/USDC 25.82% WBTC/WETH 13.05% WETH/USDT 10.58%
Stablecoin trading pairs feature prominently in the top three pairs on Uniswap V3 (Ethereum). WETH/USDC leads with 25.82%, followed by WBTC/WETH with 13.05% and WETH/USDT with 10.58%. This highlights the importance of stablecoins in driving liquidity and trading activity on these decentralized exchanges.
4.2.2. Stablecoin active trading pairs on Uniswap V3 (Arbitrum One)
Uniswap V3 (Arbitrum One) Top Trading Pairs Volume % USDC/WETH 28.12% WETH/USDC.E 15.09% WETH/USDT 14.58%
Stablecoin trading pairs are widely used in the top three pairs on Uniswap V3 (Arbitrum One). USDC/WETH leads with 28.12%, followed by WETH/USDC.E with 15.09% and WETH/USDT with 14.58%. This indicates the importance of stablecoins in driving trading activity on Uniswap V3 (Arbitrum One).
4.2.3. Stablecoin active trading pairs on Uniswap V2 (Ethereum)
Uniswap V2 (Ethereum) Top Trading Pairs Volume % WETH/USDT 5.87% WETH/USDC 3.8% PEPE/WETH 3.47%
Stablecoin trading pairs have a limited presence in the top 3 pairs on Uniswap V2 (Ethereum). WETH/USDT leads with 5.87%, followed by WETH/USDC with 3.8% and PEPE/WETH with 3.47%.
Americas
Armed with this knowledge, you are now ready to explore the dynamic world of stablecoins. You can confidently evaluate the best players, understand their price stability, and see how they interact with different blockchains and exchanges.
Whether you’re looking for a safe haven amid the cryptocurrency storm or a tool to streamline your transactions, stablecoins offer exciting possibilities. But remember: Be curious and keep learning. Who knows what opportunities may come your way?
