The most dominant stablecoin in the cryptocurrency ecosystem has seen some competition during the last few years, but the token tether has remained king in the face of rivalry. Just recently, a “Q2’20 review” published by the digital currency data and analytics firm Messari shows that tether’s daily transaction value is set to eclipse bitcoin’s daily transaction value in the near future.
Ever since the first tokens were issued back in October 2014, the tether (USDT) stablecoin economy has been an enigma, to say the least. Moreover, since 2017 the market capitalization of tether has grown exceptionally large capturing roughly $10 billion in value as of July 22, 2020.
The tether economy has grown massively despite the competition over the last few years, as tokens like pax standard (PAX), trueusd (TUSD), dai (DAI), and usd coin (USDC) nip at the stablecoin’s heels.
Now a recently published “Q2’20 review” concerning the stablecoin economy written by Ryan Watkins notes that tether’s daily transaction value may soon supersede bitcoin’s daily transaction value.
At the time of publication only $100 million remains in between both crypto asset’s daily transaction value.
Data from Coin Metric’s charts also indicate that most of the value stems from USDT tokens created on the Ethereum blockchain. Stablecoins transactions have seen over a half of a trillion U.S. dollars settled during the first half of 2020.
The report written by Watkins highlights that stablecoins offer “24/7 uptime and relatively quick settlement” and they have seen “increased usage in defi” sector.
“While inter-exchange settlement remains the most dominant use case for stablecoins by far, more generally, stablecoins are simply a better means of storing and moving dollars around the world,” the researcher details.
Statistics also show that tether (USDT) has more trade volume than bitcoin (BTC) and this trend is a usual occurrence. Comparatively, data from into the intotheblock.com shows USDT whale concentration is 12.03%, while bitcoin’s whale concentration is only 1.39%.
Data from Cryptocompare shows that USDT captures 64.02% of BTC’s trading share. This is also the case for various digital assets as the largest market pair typically is tether.
Stats from exchanges that swap BTC worldwide indicate that tether is traded more often than fiat currencies.
Fiat currencies like the USD (11.20%), JPY (9.30%), EUR (4.46%), and KRW (3.79%) are BTC’s top fiat pairs on July 22. Those fiat assets do not stack up to USDT with their forces combined.
What do you think about tether surpassing bitcoin’s daily transaction value in the near future? Let us know in the comments section below.
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