In the ongoing cryptocurrency bull market, the overall value of stablecoins has remained relatively unchanged. Remaining at around $129.5 billion, down from $139 billion in December 2022, the trend runs counter to typical market expectations during a bull run. This stagnation stands in stark contrast to the dynamic growth seen in other segments of the cryptocurrency market. Based on analytical calculations, CFO of the ASTL investment project Konstantinas Sizovas tried to explain current trends and the impact of stablecoins on the digital currency market.
The focus now will likely be on the different trajectories of stablecoins on the Ethereum and Tron networks. The value of Ethereum stablecoins decreased by 34%, while the value of Tron increased by 57.7%. These contrasting developments provide insight into changing preferences among crypto investors. Well, the method of storing stablecoins varies significantly in different networks. On Ethereum, half is in wallets, 30% is in centralized exchanges (CEX), and only 5.5% is in DeFi protocols – marking a sharp decline from 25% in January 2022. In contrast, Tron shows a higher propensity for holding private wallets.
Ethereum’s role as a leading blockchain requires a detailed study of the stablecoin market. The token dynamics are roughly as follows – USDT dominates the Ethereum stablecoin market, with USDC and DAI seeing noticeable supply declines, and other tokens such as BUSD also seeing their supply decline significantly. Most Ethereum stablecoins are found in EOAS and CEX. The decline in DeFi protocol inventory suggests a strategic shift among investors, which could potentially be impacted by the emergence of layer 2 solutions. A significant concentration of assets in stablecoins is observed in a small percentage of addresses. This discrepancy is further emphasized by the inactivity of a large portion of these assets.
This stable state of the stablecoin market amid the bull phase has several implications: First, the market’s focus on the stable supply of stablecoins indicates a more cautious investment approach in the crypto space. Secondly, there appears to be a slight evolution in investor strategy – the transition from DeFi to other holdings involves a response to new technologies and platforms. Third, growth opportunities – the resilience of stablecoins, especially on Tron, and the dominance of USDT on Ethereum could pave the way for new market growth and diversification strategies.
Against the backdrop of such trends, one of the legitimate and stable forms of investing in obtaining a consistently high passive income is investing in the ASTL project (Hong Kong), which gives investors the opportunity to directly invest fiat and cryptocurrency assets in a stable passive income, which obviously exceeds inflation expectations and does not fall under any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors – an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high APR (up to 14%) with payments in stablecoin (USDT) and the possibility of a full return on investment through the subsequent sale of accrued ASTL tokens on leading crypto exchanges . Details can be found at https://astl.world