Stablecoin Utilization and Institutional Adoption: A Two-Year Analysis from Bear Market to Bullish Turnaround (2023-2024)
This dashboard presents a mid-term analysis of the utilization patterns of three major stablecoins—USDT, USDC, and DAI—from January 2023 to August 2024, highlighting three key metrics (monthly TXN count, monthly transfer volume, and average transaction size). The period covers significant transitions in the cryptocurrency market, including the recovery from the 2022 bear market, the anticipation of Bitcoin and Ethereum ETF approvals, and the lead-up to the Bitcoin halving in 2024.
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Observations and Context
Early 2023: The data from January 2023 shows the impact of the ongoing bear market, with lower transaction volumes and smaller average transaction sizes. USDC was the most heavily traded stablecoin during this period, likely reflecting its use as a safe harbor amidst market uncertainty.
Mid to Late 2023: As the market sentiment began to shift in late Q3 and Q4 of 2023 (likely due to increasing speculation about the approval of Bitcoin and Ethereum ETFs and the upcoming Bitcoin halving), we observe a rise in both transaction counts and volumes across all stablecoins. This period marks the beginning of renewed institutional interest, as indicated by the rising transaction sizes, especially in DAI.
2024: The data from 2024 further supports the trend of growing institutional involvement. The Bitcoin ETF launch in January 2024 and the Ethereum ETF launch in July 2024 contributed to significant spikes in transaction volumes and average transaction sizes, particularly in DAI, which seems to be preferred for large, strategic moves. The anticipation of the Bitcoin halving in April 2024 also drove increased activity, as investors positioned themselves ahead of this historically bullish event.
Central Conclusion
The analysis clearly illustrates the growing institutional participation in the cryptocurrency markets, particularly in the lead-up to and following the approval and launch of major ETFs. This is reflected in the increasing transaction volumes and average transaction sizes, especially in DAI, which is often used for larger transactions. The shift from a bear market in early 2023 to a more bullish environment by late 2023 and into 2024 underscores the importance of these macro events in shaping market behavior and stablecoin utilization.