Stablecoins flowed to a new set of chains in Q1 in search of growth
The post Stablecoins flowed to a new set of chains in Q1 in search of growth appeared on BitcoinEthereumNews.com.
Stablecoins shifted their weight in Q1, flowing into a new set of chains. While more USDT and USDC were added on Ethereum, the stablecoin supply increased on smaller chains. Stablecoin supply increased for new or previously forgotten ecosystems, potentially setting up more favourable liquidity conditions. Currently, Ethereum and TRON remain the stablecoin leaders in terms of usage. However, smaller niche chains had the biggest percentage growth in Q1, as stablecoins were distributed in search of new earning opportunities. The shift in stablecoin flows followed another expansion of the overall supply to 231.9B tokens, up another 2.88% in March. The growth comes from USDT and USDC mints, in addition to the creation of new supply for algorithmic or crypto-collateralized protocols. Small protocols turn to self-created liquidity Morph, Cronos, and Stacks were the biggest growth chains that attracted new inflows of stablecoins. In the fourth position, the Build on Bob chain built up its supply to over $1M. BOB is an outlier, since the chain is issuing its native asset, instead of receiving bridged funds. Morph Finance is also testing its own algorithmic stablecoin. Cronos also expanded its supply with the native USC. Algorand, ZKSync and Hedera also saw stablecoin inflows, with the hope of reviving their previous activity. Algorand mostly carries USDC, the same as ZKSync. Hedera also has over 99% dominance of USDC, as the three chains seek a more secure, fully regulated asset. The most significant change came for Solana, which grew its stablecoin supply by 146% to $12.53B. The inflows mostly came from USDC, as Circle had a special series of mints for the Solana ecosystem. USDC helped create the meme token trading peak on Orca, as stablecoins added liquidity for the newly launched trading pairs. USDC is also key for Kamino Lending and other Solana-based protocols, aiming…
Filed under: News - @ April 3, 2025 9:28 pm