The daily trading volume of the decentralized exchange (DEX) for USD Coin (USDC) reached $2.8 billion on the 22nd. This increase is attributed to the activation of DeFi trading and the growing use of stablecoins in the on-chain market. The total spot DEX trading volume exceeded $10.886 billion on August 20, surpassing $10 billion for the first time since June 5. Circle announced that at the end of the second quarter, the circulating supply of USD Coin was $73.3 billion, with an on-chain transaction volume of $14.8 trillion. The circulating supply increased by 19% compared to the same period last year, while the on-chain transaction volume rose by 151%. However, the increase in trading volume may not be directly related to the rise in physical payments. According to a report by Talos, USD Coin is expected to account for 77% of the adjusted stablecoin transfer volume by 2026. DEX trading volume refers to the scale of transactions on blockchain-based exchanges, and if the same funds are traded multiple times, the total trading volume can be significantly higher than the net capital movement. USD Coin, along with Tether (USDT), is a major stablecoin pegged to the dollar value, and Circle is expanding its institutional connections. Understanding the nature of DEX trading volume is important, and this trend indicates that the pace of on-chain finance has accelerated.
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