Digital Dollar Dominance (DDD)
A transparent, continuously updated stablecoin benchmark measuring total stablecoin market capitalisation as a percentage of US M2 money supply. Published by DDD Research to track the pace of dollar digitization.
Index Definition
Digital Dollar Dominance (DDD) expresses the total market capitalisation of stablecoins as a ratio of the US M2 money supply. It is designed to capture, in a single number, the extent to which programmable dollars have penetrated the broader monetary system.
The benchmark serves as a foundational metric for stablecoin research, enabling analysts and researchers to compare stablecoin adoption data against the traditional dollar money supply over time.
Calculation
The formula is:
The result is expressed as a percentage. For example, a DDD value of 1.00 means stablecoin market capitalisation equals 1% of US M2. This stablecoin vs M2 ratio provides a clear lens on dollar digitization trends.
Numerator: Total Stablecoin Market Capitalisation
Source: DeFi Llama Stablecoins API.
Coverage: All stablecoins tracked by DeFi Llama across all supported blockchains. This includes fiat-backed (e.g. USDT, USDC), crypto-collateralised (e.g. DAI), and algorithmic stablecoins.
Update frequency: Continuous. DeFi Llama aggregates on-chain supply data in near real-time.
Unit: US dollars.
Denominator: US M2 Money Supply
Source: Federal Reserve Economic Data (FRED), series M2SL (seasonally adjusted).
Update frequency: Monthly. The Federal Reserve typically publishes M2 data approximately three weeks after the reference month ends.
Handling lag: Between FRED releases, DDD uses the most recently published M2 value. When a new M2 figure is released, the benchmark updates immediately. Historical values are not retroactively adjusted for M2 revisions unless otherwise noted.
Unit: Billions of US dollars (converted to match the numerator's unit).
Inclusion Criteria
DDD includes all assets classified as stablecoins by DeFi Llama. This encompasses:
- Fiat-backed stablecoins (USDT, USDC, BUSD, TUSD, etc.)
- Crypto-collateralised stablecoins (DAI, LUSD, etc.)
- Algorithmic and hybrid stablecoins
- Stablecoins on all tracked chains (Ethereum, Tron, Solana, BSC, Arbitrum, etc.)
DDD does not apply its own inclusion or exclusion filters beyond DeFi Llama's classification. If DeFi Llama tracks it as a stablecoin, it is included in the numerator.
Historical Stablecoin Data
The DDD series is available from January 2021 onward, based on DeFi Llama's historical stablecoin supply data and FRED's monthly M2 releases. Pre-2021 data is not currently published due to limited stablecoin tracking coverage in earlier periods. View the full historical dataset and charts.
Known Limitations
- M2 publication lag: M2 is published monthly with a ~3 week delay. During this window the denominator is stale while the numerator updates continuously, which can temporarily overstate or understate the ratio.
- M2 revisions: The Federal Reserve occasionally revises historical M2 data. DDD does not retroactively adjust historical benchmark values for these revisions unless the revision is material.
- DeFi Llama coverage: DeFi Llama may not track every stablecoin on every chain. Stablecoins on untracked or newly launched chains may be temporarily excluded from the numerator.
- Depegged stablecoins: Stablecoins that have depegged are still included in the market cap figure as long as DeFi Llama continues to track them. Their inclusion at market value (rather than par) may slightly deflate the numerator.
- Non-USD stablecoins: DeFi Llama's stablecoin aggregate may include non-USD-denominated stablecoins (e.g. EURS). These represent a negligible share of total stablecoin supply but are not explicitly excluded.
Changelog
No changes to methodology have been made since the benchmark's inception. Any future changes to data sources, inclusion criteria, or calculation method will be documented here with the date and rationale.
Questions
For methodology enquiries or stablecoin data questions: hello@dddresearch.com