Last month, the Bitcoin (BTC) price traded in a narrow range and volume relatively stable. Meanwhile, many Ethereum symbols have topped the lists, especially decentralized economic symbols (DeFi).
New data from Messari shows that Ethereum has ignited bitcoin as the network with the most value per day. This means that the value of the dollar in ETH and tokens is now higher than in bitcoins.
While the DeFi sector is growing in popularity, the bulk of this volume came from stable currency transactions, which amounted to more than $ 508 billion in transactions during 2020. That is double of approximately $ 253 billion in 2019.
Tether (USDT) main volume is stable, and according to Messari, Bitcoin could overtake it as the most traded cryptocurrency on the market.
Stable currencies continue to rise sharply
Bitcoin offers colorful currencies through protocols such as Counterparty and Omni, but these assets are declining compared to Ethereum's smart contracts, which still showcase new DeFi capabilities. Apart from lower fees and faster transaction times, Ethereum has become the preferred chain of stable centralized and decentralized currencies.
While USDT was first released on the Bitcoin blockchain, only 13.2% of the supply is currently in BTC, while the Ethereum series owns 59.8% of the USDT supply. Since most of the USDT balance is held in Ethereum, USDT is also the largest gas sponsor online, according to ETH Gas Station.
Under the leadership of the USDT, the collective capitalization of the stable foreign exchange market has grown from $ 2.4 billion to $ 8 billion in the first quarter alone. An additional $ 3.8 billion was added in the second quarter, currently exceeding $ 12 billion, and approximately $ 9.18 billion is owned by Tether. Tether has also surpassed Ripple (XRP) as the third largest cryptocurrency.
DeFi drives the demand for stable currencies
While cross-exchange is the most common use for stable currencies, DeFi is also an important force in the growing activity of the Ethereum network. Because currencies are tied to banknotes, stable currencies are very popular among DeFi lending protocols, which will have traction throughout 2020.
The platforms have grown significantly in closed-end funds, and in the second quarter the number has increased to more than 2 billion dollars. The complex alone has made significant progress and borrowed more than $ 1 billion in assets.
Ethereum bit a little more than she could chew?
A stable currency and growth in the DeFi segment may continue to affect transaction volume and estimated value in Ethereum, but can the network support this growth?
Stable currencies already account for over 70% of the total stable daily value, and if Ethereum continues to face unresolved issues with congestion and hierarchy, there could be real issues on DeFi platforms.
It is currently unclear whether Ethereum will be able to handle the rapidly growing Stablecoin and DeFi activity, especially when companies target the sector.