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Snapshot of Stablecoin Performance – Tether, USD Coin, Dai: CoinGecko Report

January 13, 2020

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In general, Tether (USDT) was the dominant stablecoin in 2019, and entered 2020 even stronger.

Among the top 5 stablecoins, Maker’s multi-collateral DAI proved to be the most volatile.

Stablecoin Dominance

Tether (USDT) continued to dominate the stablecoin market in 2019 despite being dogged with allegations of it not being backed 1:1 with USD. (Tether’s transparency page indicates that it currently has an excess of assets of over $100 million).

It is the only stablecoin to have increased its dominance (measure in relative market capitalization) while the rest of the pack suffered losses of varying percentages.

True USD (TUSD) suffered the greatest loss in supply dominance, and was overtaken by Paxos Standard (PAX) in August 2019. Gemini Dollar (GUSD) has declined tremendously and is no longer a top 5 stablecoin.

A similar trend was also observed for trading volume. In 2019, Tether saw strong growth in its Ethereum ERC-20 and Tron TRC-20 token usage.

Lost Pegging

Losing stablecoin peg is defined as the deviation of more than ± 1% over $1.00 (measured on daily closing price).

Among all stablecoins, DAI is the most volatile with 111 counts, while USDT was the most stable with only three counts.

There is a strong correlation between the stablecoins’ ability to maintain their $1.00 peg with overall liquidity. DAI had the least markets available and has the lowest trading volume (~100x lesser vs. PAX, ~12,000x lesser vs. USDT)

Note: DAI data combines both SAI and DAI with deviation calculated using daily closing prices and the actual number maybe more.

CoinGecko’s Upcoming Q4 2019 Report

CoinGecko’s snapshot of the performance of stablecoins in 2019 is only one of the various topics that will be featured in their upcoming Q4 report. Other things that will be covered include market dynamics, crypto exchange statistics (both spot and derivatives), our thoughts on crypto in 2020, Eth 2.0, Defi and more.

The 10th edition of the CoinGecko’s Quarterly Report will be released soon. Be the first to receive it here.

CoinGecko
Since 2014, CoinGecko has been the trusted source of information by millions of cryptocurrency investors. Its mission is to empower the cryptocurrency community with a 360-degree overview of the market. CoinGecko provides comprehensive information from thousands of data points such as price, trading volume, market capitalization, developer strength, community statistics and more. It currently tracks over 6,500 tokens from over 400 exchanges.

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