Stablecoins comprised 77% of Optimism TVL in January

Knowledge from the decentralized finance (DeFi) complete worth locked (TVL) aggregator DefiLlama reveals that the Optimism chain recorded constructive inflows in 27 out of the final 30 days.

Based on DefiLlama, this influx resulted in a $119 million improve in Optimism’s TVL, representing about 18.3% of the chain’s total stablecoin market capitalization.

The one days within the final month when Optimism didn’t have a constructive influx had been Jan. 1, Jan. 3, and Jan. 17, with the chain dropping about $7.43 million from its stablecoin valuation.

Originally of the 12 months, Optimism’s stablecoin market cap stood at $539.19 million. However by Jan. 31, following the sustained constructive influx, the chain’s stablecoin holding was valued at $651.01 million, representing greater than 77% of its complete worth locked.

Optimism’s stablecoin influx, January 2023. Supply: DefiLlama

DefiLlama’s knowledge additionally confirmed that 47.2% of Optimism’s stablecoin market cap was made up of USD Coin (USDC), which has confirmed to be probably the most dominant stablecoin throughout different chains as nicely.

Based on one other crypto knowledge aggregator, CoinMarketCap, the layer-2 answer’s TVL has recorded an total improve of seven.56% within the final seven days and 38.17% within the earlier month.

Stablecoins play crucial position in DeFi liquidity

In DeFi-speak, influx is the entire quantity of stablecoins transferred right into a community, whereas outflow is the quantity moved from it. Such actions usually give crypto analysts insights into the overarching nature of the market. For example, constructive inflows might signify a bullish market, and a rise in outflows might point out a bearish market.

A lot of the liquidity in DeFi platforms like decentralized exchanges (DEXes) and lending protocols comes from stablecoins. For example, within the second half of 2022, round 45% of the liquidity in decentralized exchanges was supplied by stablecoins.

Ethereum maintains dominance within the stablecoin market cap

Ethereum (ETH) controls the lion’s share of the stablecoin market with a present TVL of $82.05 billion,  virtually 60% dominance. Nonetheless, the determine represents a 3.5% drop from the beginning of the 12 months, when ETH’s stablecoin market cap was $85.56 billion.

Different networks with stablecoin TVLs of greater than a billion {dollars} embrace TRON, with a stablecoin market cap of $36.39 billion, and the Binance Good Chain (BSC), which holds about $9.12 billion value of stablecoins.

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