- ETH and Stablecoins operating on Ethereum settled over $1.6 Trillion in 2020
- The three main stablecoins driving transaction quantity on Ethereum are Tether (USDT), USDC and DAI
- Stablecoins are a bridge between conventional finance and crypto markets
ETH, along with stablecoins operating on the Ethereum network settled over $1.6 Trillion in transactions final yr. That is in response to a report by the crew at Consensys who additionally identified that almost all of the stablecoin transactions on Ethereum had been carried out through Tether (USDT), USD Coin (USDC) and DAI.
They shared their evaluation of Ethereum and stablecoins through the next assertion.
The three largest stablecoins, USDT, USDC, and DAI have seen such an increase in use in 2020 that they’re now answerable for extra commerce quantity on Ethereum than the asset that pays for computation — ether (ETH) — itself.
The annual transaction quantity for ETH this yr was $385 billion, however Tether’s USDT token settled $580 billion on Ethereum, Circle’s USDC stablecoin settled $239 billion on Ethereum, and MakerDAO’s DAI stablecoin settled $98 billion. All instructed, practically $1.6 trillion USD in stablecoins and ETH transacted on Ethereum in 2020.
Stablecoins: A Bridge Between Conventional Finance and Crypto
Moreover, the report went on to clarify that stablecoins had been a vital bridge between conventional finance and the crypto markets. Stablecoins are on the core of actions comparable to borrowing and lending with crypto derivatives merchandise utilizing them as a base worth.
Moreover, some savvy people are utilizing stablecoins to hedge in opposition to native currencies shedding worth. The report offers an instance of people in Brazil utilizing USD pegged stablecoins as a substitute for their native Brazilian actual.
Governments Working to Regulate Stablecoins or Subject their Personal
When it comes to regulation, the crew at Consensys highlighted that the rise of stablecoins has led a number of governments to contemplate methods of drafting legal guidelines that permit their existence in an appropriate surroundings. The identical governments, by way of their respect Central Banks, are additionally exploring methods of issuing their very own digital currencies on the assorted sensible contract platforms.