What do we know about Stable Coins on Algorand?

First of all we should know that there are 6 different stable coins on Algorand all of which have different initial supply. You can see their name and supply in table below.

Stable Coins have different mint or unlock mechanisms so there is difference between their Total supply and circulating supply. For example STBL has a total supply of 1 Trillion which is locked in its Algofi contract and gets minted by overcollateralizing mechanism through lending financial service of Algofi.

We only chose USDC, USDT and STBL to pursue the analysis and the reason is pretty obvious in chart below. some of other stable coins have few transactions and use cases that complicate following of the analysis unnecessarily .

Now let's take a look at top 10 holders of USDT, STBL and USDC on Algorand.

• Beside from that weird group9 hot wallet that i don't know who is the owner, Hubi, OKEX and Binance are top holders of USDT on Agorand, and after that there are some pools on differen protocols.
• No CEX holds STBL and all top 10 holders are addresses of pools, with top 3 being in Algofi.
• #1 and #5 of USDC holder are Huobi and OKEX exchange but others are only pools in Algorand DEXes which is a good sign.

Next Step >> Swap Volume; There are some interesting findings looking at the stats regarding swapping in &out of stable coins:

• USDC is evidently the most popular stable coin; it remained its popularity since the beginning.
• Before birth of STBL in Dec 2021, USDT was the only rival for USDC but it rapidly lost its popularity to STBL which has grow almost constantly during its life course.
• This is also the case for swapping in stable coins
• May significant increase was due to recent market crash that will be further investigated.

We wanted to see if recent crash of UST (Algo-Stable coin of Terra money) had any effect in users behavior towards other stable coins. Next two charts are sowing average amount of stable coins in each day before and after UST depeg.

• Swapping out of USDT seems to be rising and there seems to be more transactions with lower numbers in all Stables.
• Swapping in all stable coins is decreasing which may be a sign of reducing popularity, and also the fact that market is ranging and people don't see a take profit situation to trade their assets for stable coins.

But this isn't all stable coin that we can find in algorand. there are some good volume of USDC and STBL on Algofi as collateral; also some of STBL and USDC circulation supply is generated from Algofi lending mechanism. I'm not sure if there are any lending protocols that use stable coins on algorand or not but Algofi is well known in this case.