
What are the on-chain metrics that matter most for the success of stablecoins? In this report we focus on USDC specifically, and look at its DeFi activity and health in comparison to three other leading stablecoins (USDT, DAI and PAX).
All data visuals were created using Velocity, which is public and free for anyone to create queries.
What metrics really matter for Stablecoins?

There are a few important facets to consider when evaluating the health of Stablecoins on Ethereum. Here is our take:
- Liquidity
- Is there enough to manage demand?
- How is it broken out at a high level?
- Supply
- Is it active and healthy?
- Who is using the top stablecoins, where, and how many protocols support them?
- Peg
- How reliable is the peg?
- Transaction Fees
- How much are users paying to use the stablecoin?
Total Value Locked in DeFi
How much stablecoin supply is staked in known DeFi protocols. An important ingredient in the picture of stablecoin health: the more stablecoins are used in more protocols the higher this number will grow over time.

Access to CSV and API endpoints for this data: https://velocity-app.flipsidecrypto.com/shareable/tvl-ZxRPeY
Volume, Active Addresses, and Transaction Counts
We break out these three fundamental metrics for on-chain activity into 3 buckets: DeFi + DEX; CEX; and Other, to observe overall growth in use of stablecoins and to see which categories are spurring that growth.
Access to CSV and API endpoints for this data: https://velocity-app.flipsidecrypto.com/shareable/triumvirate-bWzSFF
Liquidity and Number of Holders
To track the number of active users, we observe both the liquidity they control, as well as the number of addresses that control it. In general the more liquidity controlled by the more users (addresses) the better. We also break this metric out by DeFi + DEX; DEX; and Other for added information.
Access to CSV and API endpoints for this data:
Developer Preference/Support
Stablecoins used by more protocols are more likely to be foundational parts of the space’s rapid expansion. We count the number of projects, including DeFi protocols, Decentralized Exchanges, dApps, and Centralized exchanges that support or rely on stablecoins for their operation. This is an indicator of developer preference and it is clear from this metric that USDC, DAI, and USDT are the default choices.
Access to CSV and API endpoints for this data: https://velocity-app.flipsidecrypto.com/shareable/protocols-ZGNEe8
How Reliable is the Peg to the US Dollar for USDC?
We use Coinmarketcap’s price ticks bucketed by day to show variance in peg. This is a fundamentally important metric that underpins each stablecoin’s perceived legitimacy and reliability to the user community.
Access to CSV and API endpoints for this data: https://velocity-app.flipsidecrypto.com/shareable/variance-KCfD9K
How Much Users Pay to Transact
Fees paid for stablecoin transactions over the last 9 months underpin the choice by users to pay in some cases significant sums to send, stake, and otherwise use stablecoins by category.
Access to CSV and API endpoints for this data: https://velocity-app.flipsidecrypto.com/shareable/fees-K3CKrq