Research Shows Rapid Growth in Demand for Stablecoins

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Since the beginning of 2020, the number of Tether addresses with a positive balance tripled, and the emission of all stablecoins taken together exceeded $20 billion.

According to analysts at IntoTheBlock, about 2.09 million USDT addresses had in positive balance as of the end of September. Since the beginning of this year, this figure has grown by 200%.

According to CoinMetrics, the total supply of all stablecoins exceeded $20 billion. Since May, the indicator doubled. USDT accounts for $15.5 billion, with the rest of the market being shared by other USD-pegged stablecoins such as USDC. The emission of USDC reached $2 billion in two years, and the jump from one to two billion occurred in the summer of 2020.

The volume of transactions in stablecoins in August exceeded the equivalent of $110 billion, which is five fold more than the monthly average of 2019. The volume of transactions in stablecoins in 2020 has been growing for five months in a row.

It is curious that the unchanged stablecoin market leader, USDT, began to lose ground. Tether USDT’s dominance index among other USD-pegged coins dropped below 80%.

Perhaps this is due to the growing popularity of decentralized finance and the DAI stablecoin, which is issued using cryptocurrency collateral frozen in the MakerDAO protocol.

Via: 2Coinfox.info

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