All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Data from the blockchain research platform, Messari, reveals that Ethereum caught up with Bitcoin in terms of daily value transfer.
- The daily value transfer of Ethereum has been steadily increasing since April 2019.
The research and data analysis platform Messari has collected data showing that Ethereum has caught up with Bitcoin in terms of daily value transfer. Messari’s analysis attributes the increase of value transfer on the Ethereum blockchain to the stablecoins.
Ethereum dominates the stablecoin platforms
According to Messari, the history of the stablecoins is linked to that of Ethereum. In this sense, Messari claims that stablecoins experienced their best quarter ever in Q1. The spread of the coronavirus (COVID-19) and its impact on the crypto market has favored stablecoins, according to Messari:
(…) stablecoin issuance ballooned over $8 billion in the quarter. The action was so dramatic it shook the prevailing order in cryptocurrencies.
At the same time, the growth of stablecoins has favored Ethereum by increasing the daily value transfer since April 2019, as shown in the chart below. By June 2019, the daily value transfer of Ethereum was up to 1 billion dollars. Although there was a decline in early 2020, Ethereum’s daily value transfer soared towards the end of February, reaching its current value of about $1.6 trillion, along with Bitcoin.
With regard to this growth, the blockchain research company has found that stablecoins accounted for 80% of the daily value transfer on the Ethereum network. Messari also added:
Ethereum is becoming the dominant value transfer layer in crypto, Tether cracked the top 3 cryptocurrencies by market cap, and stablecoin challengers have gained serious momentum.
On the other hand, Messari also determined that stablecoins are used to make “significantly larger” transfers than Bitcoin. Stablecoins are more suitable for transferring value between exchanges. According to Messari, this is one of the most important uses for stablecoins today.
Messari predicts that Ethereum will continue to dominate the issuance of stablecoins. Compared to its competitors, Ethereum offers maturity and a dynamic ecosystem. Messari claims that investors are simply “following the money”. Among the stablecoins that have benefited most from the growth in value transfer is Tether, followed by Circle’s USDC, and the stablecoins of exchanges Binance and Huobi.
Messari concludes that growth in stablecoins could quadruple by 2020. Given the scarcity of dollars facing the world, Messari says, stablecoins could provide “real value” to anyone who can use a smartphone:
The announcement of Libra and the growth of stablecoins last year caused many consider 2019 as the year of stablecoins. But if trends from the past quarter persist, 2020 could very well give 2019 a run for its money.
However, a report from the Financial Stability Board (FSB) could change this trend. According to the FSB, stablecoins represent a potential danger to the world economy. Although the FSB recognizes that there is not yet a stablecoin that meets the characteristics to be a real threat, the institution is already working on ways to regulate and control the emergence of this type of asset. Representing 80% of the daily transfer value for Ethereum, this could be catastrophic for the platform, Bitcoin and the entire crypto market.
Follow us on Facebook and Twitter and don’t miss any hot news anymore! Do you like our price indices?
