Stablecoins Market Cap on Ethereum Network Falls by 34%
In 2023, stablecoin transactions reached a notable $7 trillion, as reported by Circle, surpassing Bitcoin in popularity across Latin American countries.
Sixdegree analysts noted a contrasting trend in stablecoin supplies on the Ethereum and Tron networks since 2022—Ethereum witnessed a 34% decrease, while Tron experienced a 57.7% increase.
Despite the absence of a significant uptick in the capitalization of collateralized digital currencies in Q4 2023, the market supply surpassed $129.5 billion by December 25, slightly down from the previous year’s end at $139 billion.
Notably, stablecoin capitalization on Ethereum declined to $69.4 billion, whereas on the Tron blockchain, it grew, attributed to lower transaction fees. The study emphasized that approximately 50% of ETH-based stablecoins are stored in offline wallets, with 30% in exchange addresses, and only 5.5% in DeFi decentralized finance protocols.
