Stablecoin Supply Grew By 388% this Year, Driven by DeFi and Derivatives


    The market for stablecoins experienced breakneck growth in 2021, with the supply for dollar-backed cryptocurrencies surging by 388%, according to data compiled by The Block Research. From a report: As indicated by The Block Research’s 2022 Digital Asset Outlook report, the aggregate supply of stablecoins has increased from $29 billion at the start of 2021 to more than $140 billion. That growth benefited a swathe of stablecoins, including tether (USDT) and USD coin (USDC), which is managed by a consortium that includes Circle and Coinbase. Several factors contributed to the surge in the outstanding supply of stablecoins, which historically have been used by high-speed crypto trading firms as a way to dampen volatility when trading between different cryptocurrencies. Over the course of 2021, retail traders parked stablecoins on decentralized finance protocols as a way to tap into juicy yields. The growth of the derivatives market was another tailwind. Most derivatives venues settle futures contracts in stablecoins, noted Tether’s Paolo Ardoino. Read more of this story at Slashdot.


    Please enter your comment!
    Please enter your name here