Stablecoins are an essential part of the broader cryptocurrency industry. In recent months, it has become apparent that USDT may be losing a bit of steam. While other assets still struggle to catch up, DAI appears to be making some surprising moves lately.
Real USDT Volume Keeps Dipping
It is not entirely surprising to see the real volume of USDT dip a bit. These past few months have proven very successful for Tether, yet there is only so much trading action to cover. Statistics by Messari confirm a decline in real volume for this asset, although nothing too significant. The current volumes have been recorded multiple times in recent weeks.
However, it is interesting how the USDT volume dropped from nearly $30 billion per day to $23.5 billion. A net 20% decrease in quick succession is alarming for any digital asset. For this particular stablecoin, it is not entirely abnormal, as several similar peaks and lows are visible on the chart. Every time a low occurs, the volume tends to bounce back within a few days.
Moreover, it appears as if other top stablecoins also note a decrease in volume. BUSD, PAX, and HUSD are all showing signs of decline lately, contrary to DAI. One thing these assets have in common is how they primarily trade on major exchanges. It appears the stablecoin interest keeps shifting to DEXes these days, although the statistics don’t confirm as much.
Remarkably, USDC continues to note slow and steady growth, as does TUSD. These currencies’ volumes are very different – $506 million and $43.5 million, respectively – yet it shows no stablecoin can be overlooked. For anyone who wants to enter the cryptocurrency space, weighing the pros and cons of all the stablecoins is essential.
DAI Successfully Bucks The Trend
Of all of the stablecoins, DAI is the only one noting a strong increase in growth lately. Its volume has risen from $76 million to $121 million over the past few days. Although this may not seem like much, it allows DAI to outperform both TUSD and PAX. Moreover, this stablecoin is on its way to surpass HUSD in volume again after seeing the inverse happen in mid-March.
The ongoing rise in Ethereum DeFi popularity will certainly contribute to the use of DAI. It is a currency that primarily thrives in decentralized finance and less in trading environments like exchanges. That is what makes this asset different from more traditional stablecoins like USDT and USDC. Even so, DAI has found its niche recently, and the overall growth is a positive note.
With all of these statistics, it is evident that stablecoins are more complex than most people give them credit for. Different currencies find their niche across the broader industry, which is all one can ask for. Different currencies can suit different needs, yet none of them can rival USDT at this time. Whether that situation will change remains to be seen.