Messari analyst Ryan Watkins in his Q2 review of stablecoins mentioned that its daily settlement in the Q1 of 2020, reached equivalent to Bitcoin and helped Ethereum ‘blew past Bitcoin’ in the second quarter.
Stablecoins’ settlement figure is the reason, the capitalization of Ethereum boasted. It is to be noted that for quite a long time, Ethereum was the main blockchain for stablecoins.
Watkins, in his review, has stated, “All said Ethereum accounts for more than 65% of all stablecoins issued, and more than 85% of stablecoin transaction value”.
Stablecoins Growth Influenced With USDT
Watkins in his analysis stated that stablecoins volumes harmonize with two of the recent trends and COVID-related financial panic is one of them.
In Q1 of 2020, the amount of circulated money increased by $2.4 billion and in the very next quarter, it further increased by $3.8 billion.
According to the reports, this recent growth was basically influenced by the USDT stablecoin, which is popularly known as Tether.
Now the market cap of $10 billion stablecoins has reached $12 billion. Another unsettling news for Bitcoin recently is that soon the USDT might beat it on public blockchains.
In January 2020, Synthetix introduced its own stablecoin called sUSD and in September 2019, Binance stablecoin was launched for trading. Currently, these two stablecoins are showing strong growth in relative terms, but they would have to wait for some time to reach near Tether.
Tether Changes Network To Ethereum
Tether is a stablecoin supported by Bitfinex and since the year 2014, this stablecoin is in the market for circulation.
Initially, Tether was being issued on the Bitcoin blockchain but in the year 2017, the stablecoin changed its network to Ethereum.
Tether also uses Tron blockchain for releasing a very small amount of USDT to the customers.
Watkins has stated that the stablecoin settlements are experiencing an upward trend presently, and it is good news not only for the stablecoins but also for the blockchains that are issuing them.
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