Stablecoins emerged as the most popular crypto sector in the third quarter, with daily active addresses exceeding 400,000, surpassing other categories such as DeFi, gaming and NFTs, according to an on-chain report published by Express junction in association with Artemis, a blockchain analytics platform.
The report found that stablecoin active addresses grew by 45% between the first and third quarters, while transactions increased by 41% over the same period.
On the other hand, DeFi daily active addresses and transactions recorded a steep decline. For context, the daily average number of transactions via DeFi protocols fell from over 1 million addresses in the first quarter to 786,000 in the third quarter.
A closer look at the report shows that Tether’s USDT is driving stablecoin dominance as it leads others in terms of market capitalization, active addresses, and transactions. However, it still lags behind rival USDC in on-chain volume, where volume fell 62% after exposure to the US banking crisis in March.
Stablecoins’ dominance was cemented in July as transactions overtook those of DeFi protocols across the monitored blockchain networks including Ethereum, Arbitrum, Polygon, Optimism and others.
Why stablecoins are growing
Stablecoin’s growth in these metrics was attributed to the inherent stability and predictability of the value it provides. According to QuickNode, this makes them an attractive entry point for both new and seasoned users.
In addition, the arrival of major payment companies such as Visa and PayPal suggests that the trend will continue.
“These companies entering this space are not only an adoption of the technology, but also facilitating the bridge between traditional finance and decentralized finance.”
DeFi and social
In the DeFi sector, Uniswap was the only protocol with notable growth since the first quarter. Data from the chain shows that the decentralized exchange’s average daily addresses have grown by about 15%, while the number of transactions has increased by 33% over the same period.
Within decentralized social networks, Friend.Tech, a Web3 social platform on Layer2 Network Base, is the dominant player. It recorded single-day peaks of over 20,000 active addresses in addition to a total of over 400,000 transactions.
The report added that the protocol’s success has led to many copycats trying to replicate Friend.Tech’s early success on other blockchain networks. It added that:
“Social media is witnessing a potential paradigm shift with the rise of blockchain-based platforms… Blockchain-enabled social platforms offer enhanced privacy, data ownership and user empowerment, potentially promoting a more equitable digital environment.”