🔵Performance Analysis of Stablecoins on the Base
🌀What is a stablecoin?
A stablecoin is a type of cryptocurrency that is designed to have a stable value, typically pegged to a reserve asset like a fiat currency (e.g., US Dollar, Euro) or a commodity (e.g., gold). Unlike many other cryptocurrencies, which can be highly volatile and experience significant price fluctuations, stablecoins aim to provide a more reliable and predictable value. It's important to note that while stablecoins are designed to be stable, they might not always perfectly maintain their peg due to factors such as market demand, regulatory changes, or flaws in their underlying mechanisms. Users should exercise caution and conduct proper research before using or investing in stablecoins.
🌌What is Base?
Base represents an open-source optimistic rollup operating on the Ethereum blockchain. These rollups stand as Layer 2 blockchain solutions meticulously crafted to enhance the scalability of foundational Layer 1 blockchains like Ethereum and Bitcoin.
The genesis of Base traces back to Coinbase, which leveraged Optimism's OP stack to bring it into existence. Following Optimism Mainnet, it stands as the second Layer 2 solution built atop the OP Stack. Base aligns with the Ethereum Virtual Machine (EVM) standards, thus permitting developers to seamlessly port their EVM codebase from Ethereum and other compatible chains onto the Base platform.
🔗Refrence
[1]. Introducing Base: Coinbase’s L2 Network
[2]. What is Base? Coinbase’s L2 Chain’s Opportunities, Decentralization Risks & More
☄Purposes of Dashboard
Stablecoins offer stability, predictability, and utility within the blockchain ecosystem. In this dashboard, we analyzed Stablecoin performance in the Base ecosystem. Considering that not much time has passed since the launch of the Base mainnet, many stablecoins have not yet been launched on this chain. Currently, 4 stablecoins are evaluated in this dashboard, which are: Dai (DAI), Magic Internet Money (MIM), USD Base Coin (USDbc) and Axelar Wrapped USDC (axlUSDC).
This dashboard consists of 3 main sections: In the first section, the swap of stablecoins in the Base chain is examined. In this section, the volume and number of swaps as well as the activity of traders are evaluated. In the second part, the transfers of stable coins in this chain are examined. In the third part, the holders of stablecoins are identified and the holders are classified based on their balance. This dashboard will be updated over time with the addition of new stablecoins to the Base chain.