Curve stablecoin crvUSD has been online for a month! How does it compare to other big players?

The crvUSD stablecoin, which was launched in mid-May this year by Curve, has been officially introduced. A researcher monitoring Curve's development, crv.mktcap.eth, recently shared an overview of the data since its launch in an article. How has the stablecoin, introduced by the leading DeFi protocol, performed in the past month?

Related reading: Introduction of Curve Stablecoin crvUSD! Learn how to use it with a brief overview of liquidation and price anchoring mechanisms

Is the price of Curve stablecoin crvUSD stable?

For a stablecoin, stabilizing the price at the target price without significant fluctuations is the primary goal. Therefore, crv.mktcap.eth first compares the price of crvUSD with other stablecoins and finds that its price fluctuation range is within the same range as other mainstream stablecoins.

Although the Peg Keepers mechanism of crvUSD causes its price to fluctuate significantly with the liquidity pool of stablecoins USDC, USDT, USDP, and TUSD crvUSD, if one stablecoin becomes severely unpegged, its price is ignored under this mechanism, which can help restore the price of crvUSD.

Next, crv.mktcap.eth further conducts a benchmark analysis by calculating the average absolute error compared to $1 and the price standard deviation of each stablecoin based on daily price data.

The data shows that among these stablecoins, the most stable price is the over-collateralized stablecoin DAI, followed by the 1:1 reserve stablecoins USDT and USDC, with crvUSD closely behind, also belonging to the category of relatively stable stablecoins.

Additionally, crv.mktcap.eth believes that if the liquidity pool of Peg Keepers deepens, it will help make the price of crvUSD more stable. However, as the market size grows, it may also attract hackers to target crvUSD.

Furthermore, crv.mktcap.eth conducts a correlation analysis of all stablecoins, and surprisingly, the price of crvUSD is most correlated with USDD, followed by USDT and USDC.

How is Curve stablecoin crvUSD being used?

After discussing stability, let's take a look at the usage of crvUSD.

Quite brutally, the daily average trading volume of all stablecoins pales in comparison to USDT. However, when calculating the average usage rate by dividing the market value of stablecoins by the trading volume, it can be observed that crvUSD has the highest usage rate among all stablecoins, which is a normal phenomenon for crvUSD in a rapid growth phase.

Finally, let's look at the market value of crvUSD. Although its market value remains at the bottom like the trading volume, the growth rate of its market value is quite impressive, increasing by about 10% daily.

Regarding the above data, crv.mktcap.eth believes that only the early development stage can achieve such a good growth rate, so focusing on stability and usage rate is a better indicator to reflect the current situation of crvUSD in the long run.

Additionally, currently crvUSD can only be minted using sfrxETH and wsteth for collateralization, and as more currencies are opened for collateralization in the future, it will undoubtedly help increase the usage rate of crvUSD.