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<p><strong>The role of stablecoins in the field of encryption is becoming increasingly important</strong> . Although controversy remains, they fulfill the need for value transfer across the chain and are not as susceptible to fluctuation as most encrypted assets.</p>
<p>As reported by Decrypt, the Office of the Comptroller of the Currency (OCC) issued a report stating that they will allow Bank of America to use stablecoins as backup. While this may not sound like a breakthrough at first, it <strong>does explain the US regulatory framework for stablecoins</strong> . Earlier this summer, they allowed banks to legally provide crypto custody services, which is the second positive development made by a major regulatory body.</p>
<p><strong>This clarification of regulations and approval behavior prompted more traditional financial institutions to collaborate with the stablecoin project</strong> . Much of the collaboration may not happen overnight, but at some point, the major US banks may start supporting stable savings currencies. As the demand for stablecoins continues to increase, this situation will most likely occur within a year or two.</p>
<p>Through analysis on the chain, we can observe that this growth is very clear, and with the recent regulatory approvals, we can better understand the direction of their development. Let's start by looking at Tether - the largest stablecoin - the daily volume of processed transactions:</p>
<p>In the past two years, the <strong>volume of Tether's on-chain transactions recorded on Ethereum has grown from $ 500,000 per day to over $ 3.5 billion per day, an increase of 7,000-fold</strong> . This allows the stablecoins to consolidate their position as the third largest cryptocurrency on the market and surpass the daily transaction volume of Bitcoin and PayPal. As the demand for tether and stablecoins transactions grows at this rate, banks are likely to expect to start holding their collateral to profit from this growing trend.</p>
<p>By tracking the deposits and withdrawals of stablecoins into and out of the exchange, we can better understand what type of activity is used for it. The IntoTheBlock Net Flow indicator is used to measure the funds flowing into the exchange minus the funds flowing out of the exchange to calculate the net amount entering / leaving the exchange. In the image below, we can see that Tether's net traffic is always negative.</p>
<p><strong>This indicates that the USD T outflow from the exchange is greater than the USDT deposited on the exchange</strong> . In fact, since 2020, USDT's net outflow from large centralized exchanges has reached US $ 6.8 billion. This shows that stablecoins are primarily used as a transfer of value, not for trading cryptocurrencies. And, most of this will likely be allocated to the DeFi protocol, allowing users to passively earn high returns.</p>
<p>As Tether's demand skyrocketed, the public's perception of it increased. By examining IntoTheBlock's stance on Twitter, we can see that negative sentiment towards Tether in 2020 has eased.</p>
<p>In the summer of 2019, tweets classified as negative sentiment accounted for a third of the total. Since then, this figure has dropped to around 5%. At the same time, the <strong>number of mentions of Tether and the number of positive comments on it had increased</strong> . This highlights that as the largest stablecoins are used by more people, the public's perception of them has changed.</p>
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<h2><strong>UNI the hair minute behind data insights</strong></h2>
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<p>Last Thursday, Uniswap distributed 15% of UNI governance tokens on the Decentralized Exchange (DEX) to all users interacting with the agreement prior to September 1. <strong>Based on an</strong> initial price of around US $ 3, <strong>Uniswap sent UNI tokens worth US $ 450 million</strong> .</p>
<p>While airdrops in encryption technology are nothing new, compared to 2017-18, <strong>they are by far the largest airdrop ever distributed</strong> . Another key difference is that UNI is distributed to existing Uniswap users and supporters, while most airdrops only reward other token holders or specific wallet users.</p>
<p>UNI issuance has had a strong impact on the Ethereum blockchain. The UNI release took Ethereum Gas costs to a new level. As soon as users can receive free governance tokens, the hourly fees are close to $ 1 million.</p>
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<p>Within 5 hours, the hourly fuel cost had increased nearly tenfold, from over $ 100,000 to over $ 900,000. <strong>This is the top value of Ethereum's gas cost per hour this year</strong> .</p>
<p>The increase in gas costs is due to the high demand for Ethereum block space. Therefore, the gas costs remain between 500 and 700 Gwei within hours, which is also one of the highest levels this year.</p>
<p>Despite the high fees, Uniswap users are still excited to receive their UNI tokens. <strong>This is perhaps the main reason why the ETH transaction volume exceeded 1.3 million on the day of the UNI release</strong> .</p>
<p>The UNI distribution marks a record annual high for Ethereum transaction volume and the second highest level seen in history. Now let's look at the internal activity of the UNI token.</p>
<p>By looking at the number of addresses that hold UNI, we see that it has become widespread. UNI has more than 80,000 holders within 48 hours, becoming the second largest DeFi token holder after LEND (excluding stablecoins and Oracle).</p>
<p>According to the official Uniswap announcement, <strong>more than 250,000 user addresses are eligible to apply for the free UNI</strong> . Although some of these addresses have not yet obtained UNI, it seems that most of them are only for sale. By looking at the zero balance address - the address where all tokens were transferred out on a given day - we can confirm that most of the UNI plaintiffs either sold or immediately transferred ownership.</p>
<p>With $ 450 million worth of tokens distributed to previous users free of charge, it may come as no surprise that UNI is fueling high amounts of Ethereum Gas trading and usage activity. <strong>Within a week of distribution, UNI has garnered strong trading activity.</strong> Even though most users sell their tokens, UNI has reached the second highest holder base among DeFi tokens. In the end, the <strong>release of UNI Uniswap became one of the most influential events on Ethereum in 2020</strong> .</p>
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