The surprising truth behind stablecoin demand: A steep drop contradicts industry expectations

Quick Take

• Stablecoin demand looks extremely weak — especially in this current market environment.
• Patrick Hansen from Circle believes the stablecoin demand is growing. However, the data indicates that this is not the case.
• Stablecoin balance on exchanges has dropped considerably from its peak in November 2022. From $44 billion to under $22 billion — which has either been converted for fiat or Bitcoin.
• Next, gas usage on Ethereum for Stablecoins has also considerably dropped since the SVB collapse in March. This represents just 6% of the total gas usage from 7.5%.
• While according to Kaiko research, TUSD now accounts for 10% of global stablecoin trade volume on centralized exchanges. Nearly all this volume is from the BTC-TUSD pair on Binance — which has zero fees.

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