Recently, the price of OTC USDT has continued to rise. According to the statistics of Coin, as of April 7, the over-the-counter price of USDT has reached 6.76 yuan, which is about 3.35% premium to the exchange rate of the US dollar against the RMB. In the past week, the OTC price of USDT has always been higher than 6.65 yuan, a weekly increase of about 1.50%, and the highest price reached 6.79 yuan. The over-the-counter USDT price also showed a significant premium over the US dollar to RMB exchange rate, and the premium showed a significant upward trend. The average premium in the last week was about 2.59%, and the highest was 3.43%.
Is the continued high premium of OTC stablecoins due to insufficient supply of stablecoins or due to strong market demand for stablecoins? In order to observe the stablecoin market trends behind this phenomenon, PAData analyzed the market data and on-chain data of seven U.S. dollar stablecoins with large market capitalizations: USDT, USDC, BUSD, DAI, PAX, HUSD, and GUSD:
This year, the supply of US dollar stablecoins is sufficient, and the expansion trend is obvious. There are 592 additional issuances. The total market value increased by 35.2 billion US dollars, an increase of 127.28%, and the average purchasing power index is below 20, which is in a period of strong purchasing power. This also means that the rate of expansion of stablecoins this year has exceeded the rate of increase in the price of Bitcoin, and the supply of stablecoins basically matches market trends.
On the other hand, the market demand for USD stablecoins is also increasing this year, and this demand may mainly come from DeFi mining pledges. This year, the average monthly on-chain transaction volume of US dollar stablecoins reached US$307 billion (assuming that the stablecoin is pegged 1:1 with the US dollar), an increase of 200% compared to last year’s average monthly on-chain transaction volume. However, the turnover rate of stablecoins this year fell from 63% to 28%, and the percentage of stablecoins held by exchanges in the supply of stablecoins fell from 27% to 17%. The percentage of stablecoins in smart contracts in the supply of stablecoins has increased from 34% to 50% this year. This shows that the main investors holding stablecoins are increasingly inclined to use USD stablecoins as an asset for liquidity pairs. Pledge for mining.
The changes in the supply and demand structure of stablecoins have reduced the impact of additional issuance and the size of the additional issuance on market conditions. Investors need to consider more about the impact of the number of stablecoins locked in smart contracts on the market.