Stablecoin Transactional Volumes Surpass That Of Venmo, Tether’s Growth Outpacing Others


  • Transfer volume across stablecoin platforms risen considerably
  • Tether sees a surge in transactional activity

Ever since, JP Morgan launched its USD-pegged, JPM Coin on a public blockchain and Facebook released the white paper for its new cryptocurrency project called Libra, stablecoins have come into the limelight.

Though in mid-2018, several stablecoins were launched, the interest in them rose as large corporations took to launch their own fiat-backed digital currencies.

Currently, Libra is facing much backlash from various law makers, including the US President who tweeted against the project.

But what exactly is going with the stablecoins of the cryptocurrency industry?

Per the latest report of TradeBlock, institutional trading tools and research for digital currencies provider, the transactional volume of stablecoin has surpassed that of Venmo.

Transfer Volume Across Stablecoin Platforms Risen Considerably

Analyzing the on-chain metrics of existing stablecoins, it found that the transfer volume across stablecoin platforms has risen considerably in 2019.

While the number of on-chain transactions across stablecoin still behind that of Venmo, the aggregate total on-chain transfer volume across the top five largest stablecoins viz. Tether, USD Coin, Dai, Paxos, and True USD now surpass the total payment volume (TPV) of Venmo.

On-chain transactions only represent the value transfer between wallet addresses and do not include trade transactions that occur on centralized exchanges.

However, between stablecoins and traditional payment processors, the number of on-chain transactions still lags behind Venmo and Zelle. While the daily transaction count of stablecoins was in thousands, Zelle saw over 1.5 million transactions per day in Q1 of 2019.

Moreover, the fees incurred in sending stablecoin across the Ethereum network is “dwarfed” by merchant fees and that of Venmo.

Across the five largest ERC tokens, customers spend $827,000 to transfer over $37 billion in Ethereum network while fees paid to Venmo are expected to reach $150 million, over the same period.

Tether Sees a Surge in Transactional Activity

Coming onto the controversial stablecoin, Tether, build on Omni layer of the Bitcoin blockchain, it has now migrated to additional versions such as Ethereum and Tron blockchains.

Tether’s ERC20 standard recently saw a surge in transactional activity and growth in its market capitalization. It actually, reached the highest spot in terms of on-chain activity including on-chain volumes and transactions.

Since March 2019, Tether has rather seen a ‘quite considerable’ uptick in on-chain transaction count that coincided with an increase in Bitcoin price.

Though other large stablecoins also showed a similar increase, Tether “far outpaced” their growth.

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