Stablecoin project, Fei Protocol, has seen 639,000 ETH staked and $1.3 billion worth of FEI minted during its token generation event.
New stablecoin project, Fei Protocol, has ended its token generation event (TGE) with 639,000 ethereum (ETH) staked and over $1.3 billion worth of FEI, the project’s stablecoin, minted.
Just over 17,000 unique addresses participated in the TGE on Uniswap, with each now eligible to claim FEI depending on the quantity of ETH they committed.
The TGE, named the Fei Protocol Genesis, also involved the project’s proposed governance token, TRIBE, which gives holders the right to vote on proposals for the project’s future development.
Indeed, a pre-swap of FEI for TRIBE worth over $385 million might be the “largest-ever AMM swap,” according to Fei Labs. Moreover, on April 3, the FEI – ETH pool on Uniswap was the largest trading pair on the decentralized exchange.
FEI, uses a new kind of stablecoin mechanism called “direct incentives.” Fei Labs, the team behind the project, bids this innovative mechanism as more capital efficient, fairer, and more decentralized approach to stablecoin management.
Stablecoins Are In
As demand for cryptocurrencies expands more broadly, so too does the demand for the primary tool used to purchase them, stablecoins.
36 stablecoins currently exist, with a combined market value of just over $65.4 billion, representing 3.3% of the cryptocurrency market.
The most popular stablecoin, tether USD (USDT), accounts for nearly two-thirds of that value, with a market capitalization of $42.32 billion, at press time.
In fact, USDT has the fourth largest market capitalization in the crypto market and saw its value in circulation more than double this year alone, as demand for USDT pairs soared.
Other popular stablecoins include Circle’s USD Coin (USDC), MakerDAO’s DAI, and BUSD, the native stablecoin of crypto exchange Binance.
Demand Soars, Supply Falls
The demand for stablecoins is directly related to the stellar performance of the cryptocurrency market. Since the start of the year, the total market capitalization for the space tripled, now sitting at a value of $1.94 trillion.
The market’s top cryptocurrency, bitcoin (BTC), led the charge, doubling since the start of 2021, reaching a high of $61,683.86. The market’s second cryptocurrency, ETH, followed this lead, recently confidently breaking above the key $2,000 mark, setting a new all-time high of $2,152.45 on April 2.
As stablecoins provide the primary gateway pair for entry into the crypto market, if this demand continues to increase, so too apparently will the demand for stablecoins.