Two months to the launch of ETH 2.0, statistics reveal that the Ethereum network, slow as it is, now secures over $7 billion worth of stablecoins.
Stablecoins are digital currencies tailored to minimize the effect of price volatility since digital assets are well known for their fluctuations. Technically, stablecoins act as a unit of account and most importantly, a reliable refuge as a store of value.
The most common stablecoins include Tether (USDT), Gemini Dollar (GUSD), Paxos Standard (PAX), USD Coin (USDC), Binance USD (BUSD), DAI which is issued by the MakerDAO protocol, and Huobi USD (HUSD).
Most of these tokens are issued from the Ethereum blockchain. There are some which are based on the Tron blockchain, and the Omni Network.
Ethereum is Dominant
The smart contracting capability enabled by Ethereum has made it possible for several stablecoins including Tether, the world’s most capitalized, to proliferate. And backing this up has been a stellar 2019 where the benefits of DeFi were highlighted.
By Q1 2020, the total value of Ethereum (ETH) measured in USD terms held at DeFi dapps had exceeded $1 billion in February.
Because the Ethereum ecosystem is free from fiat influence as loans and interests are paid out in digital currencies and specifically the issuance of loans is in DAI, a stablecoin, the success of DeFi therefore means the wide adoption of stablecoins.
Tether (USDT) Flips Bitcoin Cash, USDT Market Cap to Pump
Stablecoins continue to be a key feature.
To measure its role, the world’s most valuable stablecoin, USDT recently flipped Bitcoin Cash (BCH). At the time of press, USDT had a market cap of $4.4 billion, exceeding BCH’s by $200 million.
Despite crypto asset prices stabilizing in the last few days, it is highly likely that USDT market cap and therefore liquidity will likely edge higher in days ahead.
The more BTC and ETH pump, the higher net-worth individuals shielding their privacy through Tether Limited will continue to pour into cryptocurrency through their preferred coin, USDT.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com