Something weird has been happening with the stablecoin supply on Hedera Hashgraph (HBAR) this year, a trend that may continue in the near term.
Data compiled by DeFi Llama shows that the network’s stablecoin supply has formed a pattern of rising sharply and then plunging within hours.
The chart below shows that the stablecoin supply in Hedera started the year at $42 million and then wavered until the end of the month. It surged to $78 million on January 28 and then plunged to $35 on the 30th.
The supply remained flat for the following few months and then began to climb in March. It moved from about $33 million on March 28 and peaked at $214 million on May 24. On May 27, the stablecoin supply on Hedera plunged to $46 million and then bottomed at $41 million in June.
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After that, the amount of stablecoin on Hedera rose gradually from $41 million in June and peaked at $224 million on August 1, before plummeting to $56 million. In late August, it jumped from $68 million to $150 million and then crashed.
Most recently, the supply peaked at $164 million on Oct. 1 and then plunged to the current $81 million.
This performance is driven by the USDC supply on Hedera due to its 99.63% market dominance. The other two: Hedera Swiss Franc and XSGD have a minor market share in the network.
Data shows that the fluctuations are mostly on Hedera’s network as the USDC supply has been in a constant uptrend, moving from the year-to-date low of $43 billion to over $74 billion today.
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It is unclear why Hedera’s stablecoin supply is having substantial fluctuations. The size of the movements suggests that the amount is being controlled by one or a few individuals. It could also be a sign that capital is flowing out of Hedera Hashgraph than is coming in.
