Tether (USDT) could soon replace Bitcoin as the dominant currency on public blockchains, says Ryan Watkins, a research analyst with the crypto analysis firm Messari.
Watkins highlights the fact that the overall stablecoin monetary base grew significantly in the first half of 2020. In the first quarter, the stablecoin monetary base increased by $ 2.4 billion and another $ 3.8 billion in the second quarter to support the base. bring in a total of over $ 12 billion.
The Messari researcher notes that Tether grew by $ 3.5 billion to become the first stablecoin to top $ 10 billion.
The dominant stablecoin is too Enclose on Bitcoin in terms of daily transaction value.
Tether is not the only stable currency to see gains. Watkins says sUSD (synthetic US dollar) has the fastest relative growth in the linked asset market. The so-called “synths” allow traders to place market bets on Synthetix, a derivative trading platform built on the Ethereum blockchain. According to Watkins, sUSD benefited from the growth of decentralized financing (DeFi) and a low starting base.
The research analyst also says that stablecoins are generally on track to trade $ 508 billion in 2020, which is more than double the total transaction volume in 2019.
In the second quarter of 2020, public blockchains paid $ 144 billion in stablecoin transactions.
Including the 12 additional days after the end of the quarter, public blockchains have settled $ 270 billion in stablecoin trades YTD, implying a 2020 transaction volume of $ 508 billion. pic.twitter.com/Z8KWXNsk6t
– Ryan Watkins (@RyanWatkins_) July 20, 2020
Tether and other stablecoins will explode in 2020, mainly due to the economic woes caused by the corona virus pandemic.