Tether (USDT) has solidified its position as the preferred stablecoin for investors, with stablecoins witnessing significant growth in Q3.
This growth has made them the leading category among investors, outpacing DeFi protocols in terms of daily active addresses and transactions, according to QuickNode’s latest on-chain report.
Stablecoin Surge
Stablecoins experienced a remarkable 45% growth in active addresses and a 41% increase in transactions between the first and third quarters. In contrast, DeFi protocols saw a decline in daily active addresses and transactions, dropping from over 1 million daily average transactions in Q1 to 786,000 in Q3.
In July, stablecoins cemented their dominance in the market, surpassing DeFi protocols in daily transactions across various blockchain networks, including Ethereum, Arbitrum, Polygon, Optimism, and more. Further,in Q3 2023, stablecoins emerged as the category with over 400,000 daily active addresses, exhibiting growth.
In addition, investors are increasingly drawn to stablecoins due to their inherent stability and predictable value, making them an attractive entry point for both new and seasoned users.
Tether USDT Leads the Stablecoin Space
Tether (USDT) continues to lead the stablecoin market in terms of market capitalization, active addresses, and transaction activity. In Q3, USDT had an average of 337,000 daily active addresses and 680,000 daily transactions.
While USDC maintained a lead over USDT in terms of volume for Q3, the analysis indicates that the gap between them has notably shrunk since Q1, partly due to Silicon Valley Bank’s collapse and a slight de-pegging of USDC by about $0.03. Furthermore, USDC experienced a significant volume decline, with a 62% decrease from Q1 to Q3.
Uniswap’s Resilience in DeFi
Despite challenges in the DeFi sector in 2023, the report highlights Uniswap as the only decentralized exchange (DEX) that maintained stability since Q1.
However, even after the collapse of Silicon Valley Bank (SVB), Uniswap’s trading volume surged, primarily driven by a few large-volume transactions. This resulted in a 15% growth in active addresses and a 33% increase in transaction count during Q3.
Staking Gains Momentum
Staking is gaining momentum as a notable trend in Q3. The total staked Ether increased from 23.7 million to 27.2 million, with 37% of this attributed to Liquid Staking – a concept resembling IOU token distribution for staked assets.
Lido DAO’s protocol also enables users to receive stETH tokens in exchange for staked assets, with Lido holding 32% of the staked ETH by the end of Q3.
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