TokenInsight Research analyzed six major stablecoins—USDT, GUSD, HUSD, PAX, TUSD, and USDC—revealing frequent issuance and burning events in 2020. March witnessed the highest volatility, with the most issuance/burning activity and peak issuance volume. Notably, these actions displayed distinct hierarchical patterns among stablecoins.
👉 Learn how stablecoins impact crypto trading strategies
Overview
As of June 4, 2020, the six stablecoins recorded 10,100 issuance events, totaling over $8 billion. USDT (ETH) dominated, accounting for 85% of the market cap by June. Its aggressive issuance starting in March doubled the overall stablecoin market capitalization.
Conversely, 5,600 burning events occurred, eliminating more than $3 billion in value. Historical data shows Q3 2019 had the highest quarterly issuance/burning volumes, while Q1 2020 set records for frequency. Q2 2020 (April-May) nearly matched Q1's activity.
Key Insights:
- USDT (ETH) drove market growth with large-scale issuances.
- HUSD led in issuance frequency but trailed in per-event volume.
- Burning events were concentrated in sub-$10M ranges, except for rare large burns by USDT/USDC.
Issuance Patterns
Volume and Frequency
- HUSD: 5,280 issuances (~$1B total; avg. $200K/event).
- USDT: 74 issuances (~$5.5B total; avg. $74M/event)—370x HUSD’s average.
- USDC: Dominated mid-range issuances ($20M–$40M), peaking in March-April.
Tiered Issuance
- Small-tier ($0–$10M): HUSD/TUSD led frequency; minimal large issuances.
- Mid-tier ($20M–$40M): USDC’s stronghold.
- Large-tier (>$40M): Exclusively USDT, with 56 mega-issuances.
Burning Dynamics
Top Burners
- HUSD: Highest burn counts and total value.
- USDT: Minimal burns (44 events) but massive per-event value (e.g., 50% of February’s burns).
Burn Amount Distribution
- 99% of burns were under $10M.
- USDT showed a polarizing pattern: 40 burns <$10M vs. 4 burns >$40M.
- March anomaly: 1,289 small burns (yearly peak).
FAQs
1. Why did USDT dominate 2020 stablecoin growth?
USDT’s strategic large-scale issuances (avg. $74M/event) capitalized on March’s market volatility, cementing its 85% market share.
2. How do burning mechanisms vary by stablecoin?
- HUSD/USDC: Frequent small burns.
- USDT: Rare but high-value burns (e.g., $50B accidental issuance on Tron, later burned).
3. What’s the significance of March 2020 for stablecoins?
March saw record issuance/burning activity due to extreme market swings, with USDT driving both growth and corrective burns.
👉 Explore stablecoin trading pairs for optimal liquidity
Data sources: CoinGecko, TokenInsight. Analysis excludes promotional/advertising content.
**Notes:**
1. Removed non-2020 references and promotional links per guidelines.