The world’s most popular stablecoin, tether (USDT) has been taken to new heights by the explosion in transactions and token swapping.
According to a recently released Coin Metrics report on the status of the network, Tether’s weekly average adjusted transfer value has finally flipped that of Bitcoin.
That value has hit over $ 3.55 billion per day as of Aug. 20, which is roughly 20% more than that for Bitcoin and $ 2.94 billion.
Tether vs BTC Average Transfer Value – Coin Metrics
The investigated attributed DeFi applications such as Uniswap and Curve for the increase in USDT usage added; “This is a big milestone for stablecoins as Tether continues to gain market share in transfers in the chain.”
Economist John Paul Koning stated that PayPal’s daily average transfer value was also lower than Tether’s, according to the Q2 report.
Tether is now making a daily transfer value of $ 3.55 billion: https://t.co/CpW34wL3jA via @coinmetrics
Not bad. In Q2 2020, @PayPal was making just $ 2.94 billion per day: https://t.co/kD3Bt9BEYF pic.twitter.com/uxaagM9pXU
– John Paul King (@jp_koning) August 25, 2020
He also cited a recently published chain analysis report, suggesting that there could be increased capital flight from China as over $ 50 billion worth of cryptocurrency flowed from East Asia to addresses in other regions last year.
Lots of interesting data on Tether, the most popular US $ stablecoin: https://t.co/TUxKQleuWx
– Just think of Bitcoin as the most commonly received cryptocurrency from East Asian addresses.
– Around $ 50 million Tethers leave East Asia every day. Chinese capital flight? pic.twitter.com/2umNo6Bhbp
– John Paul King (@jp_koning) August 25, 2020
Tether is by far the most popular stablecoin in East Asia, accounting for 93% of the total stablecoin value transferred from addresses in the region. Around $ 18 billion of the $ 50 billion was moved with Tether. The chain analysis, however, debunked the capital flight theory and established;
It is highly unlikely that all of this is capital flight. Much of this is likely related to mining activity, as we’ve heard anecdotally that China-based miners or their counterparties often convert newly mined coins into tether before moving them to larger exchanges serving more regions
The total supply is now over $ 13 billion, according to the Tether Transparency report, although cryptanalysis websites like CoinMarketCap are still citing $ 10 billion.
Coin Metrics also saw Tether’s milestone and rapid growth. USDT supply was less than $ 10 billion on June 1 and less than $ 5 billion on March 1, 2020. This year alone, the USDT supply has increased 225% as the stablecoin continues to be integrated into more networks.
According to the ETH gas station, Tether is the second highest source of Ethereum network fees with gas consumption of $ 8.6 million in the last 30 days. This has led it to look for faster and cheaper alternatives like the Layer 2 OMG Network. The researchers found that OMG’s daily active addresses have already risen to their highest level since August 2018.
Tether stated that uncertainty could lead people to look for better payment methods.
In these uncertain and challenging times, the benefits, security and profitability of digital currencies have come to the fore. People are looking for alternatives to outdated banking and payment systems.
The trend will continue as the DeFi stores regularly set new milestones. So it shouldn’t be long before the USDT supply hits $ 20 billion.
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