March Market Analysis & Key Trends

Have you ever wondered what keeps the crypto market afloat during volatile times? Introducing stablecoins, the game changers of the crypto world!

This Coinpedia guide is your key to unlocking the secrets of the top stablecoins. We’ll crack open the vault and reveal the power players in the market, put price stability under the microscope, and unravel the fascinating relationship between stablecoins and the blockchains they operate on.

Buckle up as we explore how stablecoins are shaking things up on both centralized and decentralized exchanges. Are they truly the future of crypto trading? Come, let’s find out.

1. Top Stablecoins: A Simple Analysis 

For a simple analysis aimed at finding the top stablecoins of the market this month, generally, we consider three parameters: market capitalization, market dominance and trading volume.

1.1. Top Stablecoins by Market Capitalisation 

Among stablecoins, Tether leads with $103.8 billion, followed by USDC at $32.2 billion and Dai at $4.8 billion. First Digital USD, Ethena USDe, USDD, and Frax hold smaller market shares. Market capitalisation reflects the total value of coins in circulation, indicating Tether’s dominance in stablecoin markets.

1.2. Top Stablecoins by Market Dominance 

Tether dominates stablecoin markets with 71.12% market dominance, followed by USDC at 21.97% and Dai at 3.28%. First Digital USD, Ethena USDe, USDD and Frax hold smaller shares. Market dominance indicates the proportion of the total stablecoin market controlled by each coin, highlighting Tether’s significant lead over competitors in terms of usage and adoption. 

1.3. Top Stablecoins by Trading Volume 

Tether leads stablecoins in trading volume with $73.6 billion, followed by USDC at $8.3 billion and First Digital USD at $ 7.8 billion. Dai, Ethena USDe, Frax, and USDD have lower trading volumes. Trading volume indicates the total value of stablecoins exchanged in the market, reflecting Tether’s dominance in liquidity and active trading compared to other stablecoins. 

2. Stablecoin Price Analysis: An In-Depth Overview 

Tether, USD Coin, Dai, First Digital USD, Ethena USDe, USDD, FRAX, and TrueUSD are the top eight stablecoins on the basis of market capitalisation, at the time of developing this report.

Let’s do an in-depth price analysis focusing on these eight coins.

2.1. Stablecoin One Month Change 

Ethena USDe leads in one-month change with a 210% increase, followed by USDC at +17.17% and Tether at +6.64%. TrueUSD, Frax, First Digital USD, Daui and USDD experienced declines. 

2.2. Stablecoin One Month % Off Peg

Among the top stablecoins, TrueUSD experienced the largest negative deviation from its peg, at -3.56%, followed by First Digital USD at -0.88%. USDC, Tether, and Dai had slight positive deviations, while Frax, USDD, and Ethena USDe had minor negative deviations. The one-month % Off Peg indicates the deviation of a stablecoin’s value from its intended peg, reflecting its stability in relation to the target price. Negative deviation from peg is considered more dangerous for stablecoins’ stability. 

3. Stablecoins in Blockchains: A Detailed Overview 

In blockchain ecosystems, USDT dominates with 69.76%, followed by USDC at 21.11% and DAI at 3.16%. FDUSD, USDe, USDD, TUSD, and FRAX hold smaller shares. This dominance indicates the proportion of stablecoin transactions conducted on blockchain networks. USDT’s significant lead suggests its widespread use and acceptance within blockchain networks, while USDC and DAI also maintain a substantial presence. 

3.1. USDT Dominance in Blockchains 

Among blockchains, Tron leads in USDT dominance with 49.82%, followed by Ethereum at 41.04% and BSC at 3.44%. Arbitrum and Avalanche hold smaller shares, while other blockchains contribute 2.84%. USDT dominance reflects the proportion of Tether transactions occurring on each blockchain, indicating Tron and Ethereum as major platforms for USDT transactions, influencing liquidity and ecosystem stability.  

3.2. USD Coin Dominance in Blockchains 

Ethereum leads in USD Coin dominance among blockchains with 78.39%, followed by Solana at 6.47% and Arbitrum at 3.59%. Base and BSC hold smaller shares, while other blockchains contribute 7.59%. The data highlights Ethereum’s prominence as a primary platform for USDC transactions, fostering liquidity and ecosystem growth. 

3.3. Dai Dominance in Blockchains 

Ethereum leads in Dai dominance among blockchains with 90.49%, followed by Polygon at 3.33% and Gnosis at 1.72%. Arbitrum and Fantom hold smaller shares, while other blockchains contribute 2.17%. The data highlights Ethereum as the predominant platform, fostering Dai’s liquidity and stability. 

3.4. First Digital USD Dominance in Blockchains 

Ethereum dominates in First Digital USD among blockchains with 94.7%, followed by BSC at 5.3%. The data indicates that Ethereum is the primary platform, which facilitates liquidity and usage of FDUSD within its ecosystem.  

3.5. Ethena USDe Dominance in Blockchains 

Ethereum exclusively dominates Ethena USDe among blockchains with 100%, indicating all Ethereum USDe transactions occur on Ethereum. 

3.6. USDD Dominance in Blockchains 

Tron overwhelmingly dominates USDD among blockchains with 99.24%, followed by a minimal presence on Ethereum and other blockchains. This indicates Tron’s crucial role in facilitating USDD transactions. 

3.7. TrueUSD Dominance in Blockchains   

Ethereum leads in TrueUSD dominance among blockchains with 66.58%, followed by Tron at 32.51%. Avalanche, BSC, and others hold smaller shares. The data implies that Ethereum and Tron are the primary platforms which facilitate TrueUSD transactions. 

3.8. Frax Dominance in Blockchains   

Ethereum dominates in Frax among blockchains with 81.14%, followed by Arbitrum at 9.26% and Harmony at 2.04%. BSC and Moonriver hold smaller shares, while other blockchains contribute 4.55%. The data tells that Ethereum is the primary platform which fosters Frax’s liquidity and stability. 

4. Stablecoins in Exchanges: A Simple Analysis 

Let’s examine the level of engagement of stablecoins on cryptocurrency exchanges, by focusing on the top three centralised and decentralised exchanges, exploring whether stablecoins feature prominently within the top three trading pairs on each platform.  

4.1. Stablecoins in Centralised Exchanges 

Binance, Coinbase Exchange and OKK are the top three centralised exchanges, on the basis of monthly visits, as they have attracted 72.3M, 43.1M, and 27.7M monthly visits, respectively. Let’s analyse these three centralised exchanges. 

4.1.1. Stablecoin Active Trading Pairs in Binance 

Stablecoin trading pairs like BTC/FDUSD, BTC/USDT, and ETH/USDT are among Binance’s top three with 16.48%, 12.97% and 7.42% respectively. This suggests that stablecoins play a significant role in this crypto exchange. 

4.1.2. Stablecoin Active Trading Pairs in Coinbase Exchange 

USDT/USD is present in the top three trading pairs on Coinbase, representing stablecoin usage. BTC/USD leads at 33.96%, followed by ETH/USD at 9.85%, and USDT/USD at 7.07%. This inclusion highlights the importance of stablecoins in Coinbase’s trading ecosystem, albeit to a lesser extent than fiat pairs. 

4.1.3. Stablecoin Active Trading Pairs in OKK

Stablecoin trading pairs play a significant role in the OKK exchange’s top three pairs. BTC/USDT leads with 23.58%, followed by ETH/USDT at 11.4%, and SOL/USDT at 5.34%. This indicates a strong reliance on stablecoins for trading liquidity on OKK, highlighting their prominence in facilitating crypto trading activities. 

4.2. Stablecoins in Decentralised Exchanges 

Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum One), and Uniswap V2 (Ethereum) are the three top decentralised exchanges, on the basis of monthly visits, as all the three have attracted more than 10,000,000  monthly visits, respectively. Let’s analyse these three decentralised exchanges. 

4.2.1. Stablecoin Active Trading Pairs in Uniswap V3 (Ethereum)

Stablecoin trading pairs feature prominently in Uniswap V3(Ethereum)’s top three pairs. WETH/USDC leads with 25.82%, followed by WBTC/WETH at 13.05%, and WETH/USDT at 10.58%. This underscores the significance of stablecoins in facilitating liquidity and trading activities on this decentralised exchange.  

4.2.2. Stablecoin Active Trading Pairs in Uniswap V3 (Arbitrum One)

Stablecoin trading pairs are prevalent in Uniswap V3 (Arbitrum One)’s top three pairs. USDC/WETH leads with 28.12%, followed by WETH/USDC.E at 15.09%, and WETH/USDT at 14.58%. This indicates the significance of stablecoins in facilitating trading activities on Uniswap V3 (Arbitrum One). 

4.2.3. Stablecoin Active Trading Pairs in Uniswap V2 (Ethereum)

Stablecoin trading pairs have a limited presence in Uniswap V2(Ethereum)’ top three pairs. WETH/USDT leads with 5.87%, followed by WETH/USDC at 3.8%, and PEPE/WETH at 3.47%.   

Endnote 

Armed with this knowledge, you’re now equipped to navigate the dynamic world of stablecoins. You can confidently assess the top players, understand their price stability, and see how they interact with different blockchains and exchanges.

Whether you’re looking for a safe haven in the crypto storm or a tool to streamline your trading, stablecoins offer exciting possibilities. But remember, stay curious, keep learning, and who knows what opportunities shall come your way!