Assessing the strength and performance of blockchain networks has always been a challenging task in the ever-evolving world of cryptocurrencies. On-chain analyst and Twitter influencer, Patrick, who goes by the name Dynamo DeFi, recently highlighted the importance of circulating stablecoins as an underrated metric for evaluating chains. In a tweet, Patrick emphasized that while not flawless, circulating stablecoins can help eliminate reflexivity, wash trading, and other factors that can distort other metrics used to assess blockchain networks.
Patrick also shared a video demonstrating the use of DefiLlama’s stablecoin tool, which tracks changes in chains and their corresponding market capitalizations. By utilizing this tool, investors and analysts can gain deeper insights into the stability and growth potential of different blockchain networks. The data provided by this tool can offer valuable information for making informed investment decisions in the fast-paced and highly volatile world of cryptocurrencies.
According to the stablecoin dashboard provided by DefiLlama, Ethereum currently leads the market with a dominant 61.86% market share and a stablecoin market capitalization of $84.87 billion. Despite recording a slight negative change of 0.61% over the past seven days, Ethereum remains a strong contender in the cryptocurrency space. Tron, on the other hand, emerged as the second most prominent chain on the dashboard, with a stablecoin market cap of $33.83 billion and a positive seven-day change of 0.53%.
Meanwhile, the BSC chain secured the third position on the dashboard with a market cap of $9.2 billion, accompanied by a negative seven-day change of 0.58% and a total locked value of 1.8. Solana, Polygon, Avalanche, and Arbitrum also made it to the top five stablecoin chains listed on the dashboard, each showcasing unique market caps, seven-day changes, and total locked values. These statistics offer a comprehensive overview of the current landscape of stablecoin market shares and allow investors to track the performance of various blockchain networks in real-time.
As the crypto market continues to expand and evolve, the importance of utilizing innovative tools and metrics to assess blockchain networks cannot be overstated. By focusing on circulating stablecoins as a key metric for evaluating chains, investors and analysts can gain valuable insights into the strength and stability of different networks. With the help of tools like DefiLlama’s stablecoin tool, individuals can make informed decisions and navigate the complex world of cryptocurrencies with greater confidence and clarity.
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