{"id":193284,"date":"2021-06-21T23:00:35","date_gmt":"2021-06-21T22:00:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=193284"},"modified":"2021-06-21T23:54:11","modified_gmt":"2021-06-21T22:54:11","slug":"is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed\/","title":{"rendered":"Stablecoin &#8216;yield&#8217; deposits nearly doubled last month even as Bitcoin crashed"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">During May, the wealth management platform<\/span><a href=\"https:\/\/www.yield.app\/\"> <span style=\"font-weight: 400;\">YIELD App<\/span><\/a><span style=\"font-weight: 400;\">, saw net deposits of Tether (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/tether\/\"><span style=\"font-weight: 400;\">USDT<\/span><\/a><span style=\"font-weight: 400;\">) increase 15.5%, while net deposits of USD Coin (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/usd-coin\/\"><span style=\"font-weight: 400;\">USDC<\/span><\/a><span style=\"font-weight: 400;\">) more than doubled, increasing 155.5%, compared to April.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This upward trend proved similar across the industry with the total<\/span><a href=\"https:\/\/cryptoslate.com\/heres-how-stablecoins-like-dai-made-an-impact-in-the-defi-space\/\"> <span style=\"font-weight: 400;\">stablecoin<\/span><\/a><span style=\"font-weight: 400;\"> supply crossing $105 billion, while the number of addresses metric suggests their user base in <\/span><a href=\"https:\/\/cryptoslate.com\/cryptos\/defi\/\"><span style=\"font-weight: 400;\">DeFi<\/span><\/a><span style=\"font-weight: 400;\"> is flourishing, <\/span><a href=\"https:\/\/bitquery.io\/\"><span style=\"font-weight: 400;\">data<\/span><\/a><span style=\"font-weight: 400;\"> shows.<\/span><\/p>\n<h2><strong>Time to shine for stablecoins<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Stablecoins are cryptocurrencies that peg their market value to a fiat currency, such as the US dollar. This sector of DeFi, as<\/span><a href=\"https:\/\/cryptoslate.com\/cryptos\/stablecoin\/\"> <span style=\"font-weight: 400;\">CryptoSlate data<\/span><\/a><span style=\"font-weight: 400;\"> shows, accounts for 6.82% of the entire crypto space. They became a staple primitive in the ecosystem and constitute the core of the high yield opportunities, which attract investors to the DeFi market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The stablecoin landscape is dominated by Tether and USD Coin, reserve-backed tokens, outshining due to their US Dollar peg. Tether, currently with $62 billion and USD Coin, with $23 billion, hold the lead by market capitalization, while Binance USD (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/binance-usd\/\"><span style=\"font-weight: 400;\">BUSD<\/span><\/a><span style=\"font-weight: 400;\">) with $9 billion and Dai (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/multi-collateral-dai\/\"><span style=\"font-weight: 400;\">DAI<\/span><\/a><span style=\"font-weight: 400;\">) with $5 billion follow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By daily volume metric, Tether is undeniably the number one cryptocurrency with $75 billion, followed by Bitcoin (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\"><span style=\"font-weight: 400;\">BTC<\/span><\/a><span style=\"font-weight: 400;\">) with $59.6 billion and Ethereum (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\"><span style=\"font-weight: 400;\">ETH<\/span><\/a><span style=\"font-weight: 400;\">) with 29.3 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what\u2019s fueling growth of the niche space considering the recent market crash? For some, it\u2019s the ability to <\/span><i><span style=\"font-weight: 400;\">earn<\/span><\/i><span style=\"font-weight: 400;\"> on idle funds that is powering a mini stablecoin revolution.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe ability to earn yield in crypto has been an interesting phenomenon that really developed and, through decentralized finance, has become extremely popular,\u201d shared Tim Frost, CEO of YIELD App,during an interview with <\/span><i><span style=\"font-weight: 400;\">CryptoSlate<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPeople love the idea of putting their money to work and their crypto to work, and just earning yield on their crypto assets,\u201d he added.<\/span><\/p>\n<h2><strong>What's earning yield and where?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Frost noted that earning an attractive annual percentage yield (APY) with depositing stablecoins, as well as Ethereum and soon, Bitcoin and Filecoin (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/filecoin\/\"><span style=\"font-weight: 400;\">FIL<\/span><\/a><span style=\"font-weight: 400;\">), on YIELD App, attracts users looking to hedge, as his platform is set to go after<\/span><a href=\"https:\/\/www.google.com\/search?q=celsius+network&rlz=1C5CHFA_enDE895DE895&sxsrf=ALeKk02eRVcSnXPMxgCBP42ECPv2cw1H0w%3A1623706084850&ei=5MnHYOiqM-OdlwTt9p-ICQ&gs_ssp=eJzj4tVP1zc0TE-Or6qsyIlXYDRgdGDw4k9OzSnOLC1WyEstKc8vygYAyXsLqw&oq=celsius+network&gs_lcp=Cgdnd3Mtd2l6EAEYADIXCC4QxwEQ0QMQkQIQiwMQqAMQ0gMQkwIyAggAMgIIADIFCAAQywEyAggAMgUIABDLATICCAAyAggAMgIIADICCAA6BAgAEEM6CgguEMcBEKMCEEM6CgguEMcBENEDEEM6FgguEMcBENEDECcQiwMQqAMQ0gMQkwI6BAgjECc6BwgAEEMQiwM6DQguEMcBEKMCEEMQiwM6AgguOhYILhDHARDRAxAnEIsDENIDEKgDEJMCOhcILhDHARDRAxCRAhCLAxDSAxCoAxCTAlD3wxRY5-YUYND9FGgAcAJ4AIABxQGIAcoNkgEDOC44mAEAoAEBqgEHZ3dzLXdpergBA8ABAQ&sclient=gws-wiz\"> <span style=\"font-weight: 400;\">Celsius Network<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><a href=\"https:\/\/nexo.io\/\"> <span style=\"font-weight: 400;\">Nexo<\/span><\/a><span style=\"font-weight: 400;\"> and<\/span><a href=\"https:\/\/swissborg.com\/\"> <span style=\"font-weight: 400;\">SwissBorg<\/span><\/a><span style=\"font-weight: 400;\">\u2019s market share.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">APY is a broadly used metric for measuring returns in DeFi, which assumes compounding rewards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While stablecoins provide a secure buffer, passive income on assets whose prices are plunging is valued particularly by long term investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOver 1% of Bitcoin now is wrapped onto Ethereum &#8211; the reality is, it allows you to put your capital to work,\u201d Frost said, referring to the<\/span><a href=\"https:\/\/www.theblockcrypto.com\/post\/107540\/1-3-of-bitcoins-supply-has-now-been-wrapped-onto-ethereum\"> <span style=\"font-weight: 400;\">statistic<\/span><\/a><span style=\"font-weight: 400;\"> that revealed the percentage of Bitcoin's circulating supply locked up to be utilized on the Ethereum blockchain.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The use of stablecoins on other blockchains has been growing very fast as Tether\u2019s issuance\/supply on the Tron blockchain surpassed the one on Ethereum, data shows.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis is a trend that is not going to stop. I think Ethereum is going to be a minority player in stablecoin issuance,\u201d said Frost in regard to stablecoins migrating to new, up and coming chains like Tron, Solana, Polygon, and Avalanche, to name a few, that are becoming more attractive due to lower transaction fees and growing utility as more DeFi products keep opening up.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>During May, the wealth management platform YIELD App, saw net deposits of Tether (USDT) increase 15.5%, while net deposits of USD Coin (USDC) more than doubled, increasing 155.5%, compared to April. This upward trend proved similar across the industry with the total stablecoin supply crossing $105 billion, while the number of addresses metric suggests their [&hellip;]<\/p>\n","protected":false},"author":699,"featured_media":193299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,32631],"tags":[76769,76800,76827,76128,76828,76824,72860],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stablecoin &#039;yield&#039; deposits nearly doubled last month even as Bitcoin crashed<\/title>\n<meta name=\"description\" content=\"Wealth management platform YIELD App sees net deposits of Tether (USDT) increase 15.5% as net deposits of USD Coin (USDC) more than double.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stablecoin &#039;yield&#039; deposits nearly doubled last month even as Bitcoin crashed\" \/>\n<meta property=\"og:description\" content=\"Wealth management platform YIELD App sees net deposits of Tether (USDT) increase 15.5% as net deposits of USD Coin (USDC) more than double.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-21T22:00:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-21T22:54:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/06\/defi-season-back2-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ana Grabundzija\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ana Grabundzija\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/is-defi-season-back-stablecoin-yield-deposits-nearly-doubled-even-as-bitcoin-crashed\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#person\",\"name\":\"Ana Grabundzija\",\"url\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"caption\":\"Ana Grabundzija\"},\"jobTitle\":\"Journalist\",\"description\":\"Dr. Ana Grabundzija is a Zagreb-bred writer with an academic background in anthropology. 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