Total Stablecoin’ Value Transfer Beats PayPal’s ‘Strongest Performance’ in History
The on-chain volume of stablecoins continues to heat up in 2021 as January recorded 12x of the same month last year. Total stablecoins market cap is poised to hit $40 billion, adding $10.5 billion in just over a month.
Stablecoins have become an integral part of the cryptocurrency market.
The biggest growth in the supply of these stablecoins, including USDT, USDC, DAI, BUSD, and PAX, was recorded last year when it added $22 billion to the market. However, these fiat-backed cryptos’ whose market cap is ready to hit $40 billion, have already added nearly half of the entire last year’s supply in just over a month. $10.5 billion of supply has been added since the beginning of the year.
When it comes to on-chain volume, stablecoins crossed the $1 trillion milestones in 2020, up from just $248 billion in 2019.
For on-chain stablecoin transaction volumes, Ethereum is the most popular blockchain that accounted for 83.5% share, followed by Tron and Omni blockchains, but they have a meager share of 14.5% and 2.1%, respectively.
As for the stablecoins, Tether (USDT) remains dominant with just under 75% share, but USDC is fast catching up, whose share of the on-chain volumes is now 15%.
When it comes to Fedwire (formerly known as the Federal Reserve Wire Network), the real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks that allows financial institutions to electronically transfer funds between its participants, it did $840.4 trillion.
However, things are heating up even more for stablecoins as in January 2021, the total on-chain volume registered has been $308.7 billion, up more than 12x from January 2020. In the four days of Feb., stablecoin has already done $90.32 billion in on-chain volumes compared to $30.81 billion done in the entry Feb of 2020.