75% of the stablecoins presented in the market were settled on Ethereum
With soaring price movements for Bitcoin, Ethereum and altcoins, a large number of traders have flocked to the stablecoin market. In March 2020, Bitcoin transactions in USDT tripled to 21.6 million BTC, a spike of 182% in just one month. In the case of Bitcoin transactions in U.S. dollars and Japanese Yen, both increased to 2.7 million BTC and 1.8 million BTC, respectively.
Monthly Bitcoin volume traded into fiat or stablecoin | Source: BitMEX
All of a sudden, every digital asset, especially Ethereum has a narrative in the industry
According to the latest post by Ryan Sean Adams, the stability of stablecoins in the past week is very different from the sell-offs of previous years. Bitcoin and Ethereum are not sold directly to the U.S. dollar this time, but they have been exchanged for a significant amount of stablecoins.
The reign of stablecoins in terms of settlements is facing a recent fundamental change. In early 2019, Bitcoin was the largest stable coin network in the world, with USDT being paid exclusively on Omni. However, that was last year.
The attached chart is a reflection of the growth of stablecoins over the past 12 months, and it is quite clear that USDT_ETH holds a monopoly over Bitcoin’s Omni. The chart below shows the growth of USDT on Bitcoin, compared to its growth on Ethereum.
Surprisingly, Tether itself also converted a large number of its stablecoins into the Ethereum network. At this time, 75% of the stablecoins presented in the market have been settled on Ethereum.
The logic behind the change is many times. Ethereum gives its stablecoin users access to the DeFi protocol, an area that is fast becoming a popular hub for lending platforms. There is also a significant improvement in the scalability and growth of UX networks.
Besides, certain banks have also contemplated issuing stablecoins on Ethereum because the efficiency and functionality of the ETH network is much higher than that of Bitcoin.
“While it’s possible another network could surpass Ethereum on stablecoin issuance, it’s unlikely that crypto banks will issue on anything other than a credibly neutral platform—that’s why we’re unlikely to see USDC on Binance chain or Tether on a chain controlled by Coinbase.”
With the stablecoin market firmly in Ethereum’s hand, the Ethereum network may be utilized much more than Bitcoin’s in the future.
ETH price continues rallying as bulls push it towards $ 200
Currently, Ethereum is trading up over 7% at its current price of $171, which marks a notable climb from multi-day lows of $140 that was set this past weekend. Today’s upswing marks an extension of that which was first incurred on Sunday evening, which is around the time when the crypto began pushing higher in tandem with Bitcoin.
ETH’s buyers, however, have proven to be more enthusiastic than BTC’s, as the crypto has been consistently outperforming the benchmark cryptocurrency and is currently trading up just under 5% against BTC.
Analysts are now noting that the crypto is fast approaching its 200-day moving average, which is a critical level that could determine whether or not this ongoing upswing turns into a full-blown bull rally.
— Big Cheds (@BigCheds) April 7, 2020
This technical level, which currently sits around the lower-$170 level, could catalyze some significant momentum – should it be decisively broken above.
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