- Stablecoins continue to thrive despite financial uncertainty
- The demand for stablecoins has continued to grow
- Stablecoin trade volume has grown in recent days
Cryptocurrency News Today – the demand for stablecoins has continued to grow. Powered by the stability that they offer to token users, and the demand triggered by DiFi (decentralized finance) lending and yield farming, stablecoins (Tether in particular) continue to post record figures consistently.
According to Messari, Tether’s USDT might soon become the digital currency with the largest daily transaction volume when it comes to the sum of USD that has been transferred across Tether-enabled networks. According to the research analyst at Messari, Ryan Watkins, Tether may usurp Bitcoin sooner than anticipated. He said:
“USDT could potentially flip Bitcoin in transaction volume this month. If it doesn’t happen now it could happen sometime soon after. Overall stablecoins have already overtaken Bitcoin when it comes to transaction volume.”
How Stablecoin Daily Transaction Volume Performed
While the USDT token and a few other USD-pegged coins like Binance USD or USD Coin have led the way in stablecoin growth. Commodity-based stablecoins also gained traction in recent months. Tether Gold (XAUT), Tether’s new gold-backed stablecoin, has reportedly seen high demand recently after its underlying commodity broke above $1,900.
Gold hasn’t posted such figures since September of 2011. It even came close to the $2,000 mark for the first time. Even though stablecoin volumes have risen, like the bulk of the crypto market, the current positions have remained stagnant for stablecoins particularly during the summer. The past few days have seen stablecoins post a considerable uptick their overall trade volume especially that of USDT and Binance USD.
The Top USD-Backed Stablecoin Contenders
Even though the overall volume of stablecoins has recently picked up, it is still very far away from the all-time highs that the asset class achieved back in March this year. But, the collective market cap for fiat-based digital tokens has been consistently growing. It has increased by $3.8 billion in quarter two of this year and accounting for $13.4 billion in total as of press time of writing.
Tether’s USDT alone makes up for a total of $11 billion out of the above-mentioned $13.4 billion, after reaching the $10 billion mark on July 22. This means USDT’s market cap has doubled from $5 billion to its current position since March. Tether even surpassed Ripple’s XRP temporarily when it became the third-largest digital currency by market cap in the market. After Tether’s USDT, the second-largest stablecoin is Circle’s USD Coin. USD Coin is the first main competition that Tether has had since its market cap surpassed the $1 billion mark in early July. After the USD Coin, Binance USD comes. Binace USD is the fastest-growing stablecoin this 2020, according to data issued by Messari.