Ethereum

Stablecoin

Terra

TRON

Source: iQoncept / Adobe 
The value of stablecoins on <a href="https://cryptonews.com/coins/ethereum/">Ethereum (ETH)</a> has experienced a decline of 34% since 2022, while stablecoins on <a href="https://cryptonews.com/coins/tron/">TRON (TRX)</a> have seen a significant growth rate of 57.7% during the same period. 
According to a recent&nbsp;<a class="editor-rtfLink" href="https://sixdegreelab.larksuite.com/docx/GK8VdjJAzoO2GIxsctYu4AHNs3e" target="_blank" rel="noopener">report from Sixdegree Lab</a>, the supply of stablecoins on Ethereum has been steadily decreasing, dropping from its peak of $100 billion to $66 billion, marking a 34% decline.&nbsp; 
In contrast, stablecoin supply on Tron has followed an upward trajectory, growing from $31 billion in 2022 to $48.9 billion. This impressive increase of 57.7% aligns with the overall market price trend. 
Despite the recent bull market, the overall value of stablecoins has not seen a significant increase.&nbsp; 
Currently, the total market value of stablecoins stands at $129.5 billion, which represents a decline of 31% compared to its peak value of $188 billion. 
Among the stablecoins,&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/coins/tether/" target="_blank" rel="noopener">Tether ( USDT)</a>&nbsp;holds the largest market share at 56.3%, followed by&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/coins/usd-coin/" target="_blank" rel="noopener">USD Coin ( USDC)</a>&nbsp;at 30.5%, and DAI at 5.07%.&nbsp; 
These three stablecoins have a combined value of $40.03 billion, $21.7 billion, and $3.6 billion, respectively. 
<h2 id="major-stablecoin-holders">Major Stablecoin Holders</h2> 
 Externally owned accounts (EOAs) hold approximately 50% of stablecoins, while centralized exchanges (CEXes) account for around 30%.&nbsp; 
DeFi protocols, on the other hand, only hold approximately 5.5% of stablecoins, a significant decrease from its peak of around 25% in January 2022. 
The decrease in stablecoin supply within DeFi protocols on Ethereum may be attributed to the emergence of Ethereum Layer2 solutions.&nbsp; 
These Layer2 solutions have provided a more favorable environment for the development of DeFi and innovative protocols. 
Addressing the holders of stablecoins on Ethereum, the majority (94.2%) hold less than $1,000 worth of stablecoins, contributing only 9.28% to the overall stablecoin holdings.&nbsp; 
In contrast, addresses holding over 100,000 stablecoins represent around 0.562% of addresses but contribute a substantial 87.6% to the total stablecoin holdings. 
Interestingly, approximately 60% of the stablecoins held by these top addresses remain dormant.&nbsp; 
These addresses are either considered reserve addresses, with a stablecoin expenditure to income ratio below 0.2, or inactive addresses that have not engaged in any stablecoin transactions within the past 180 days. 
<h2 id="stablecoins-see-positive-supply-growth">Stablecoins See Positive Supply Growth</h2> 
 Back in November, the 90-day net change in the supply of the top four stablecoins, USDT, USDC,&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/coins/busd/" target="_blank" rel="noopener">Binance USD (BUSD)</a>, and Dai (DAI),&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/news/stablecoins-see-positive-supply-growth-for-first-time-in-more-than-a-year-glassnode-data.htm" target="_blank" rel="noopener">turned noticeably positive</a>, marking the first such instance since the collapse of Terra in mid-May 2022. 
Stablecoins have been widely used to fund cryptocurrency purchases since 2020.&nbsp; 
An increase in their supply is seen as a potential buying pressure or a reserve of funds that investors can deploy to purchase cryptocurrencies or use as a margin in derivatives trading.&nbsp; 
Stablecoins remain key to the day-to-day operations of the cryptocurrency industry, acting as a bridge between traditional finance and cryptocurrencies. 
“Stablecoins have become the foundation of the cryptocurrency market,”&nbsp;William Quigley, one of the co-founders of Tether,&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/exclusives/paypal-is-highly-unlikely-to-become-a-dominant-player-in-stablecoin-market-tether-co-founder.htm" target="_blank" rel="noopener">told Cryptonews</a>. 
“Stablecoins are the core ingredient in virtually all DeFi applications. Without stablecoins, overall trading volume and liquidity in the crypto market would likely drop 75%.”

Value of Stablecoins on Ethereum Sees 34% Decline, Tron Records 57.7% Growth since 2022

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