Tether’s average daily conversion value has exceeded the average for Bitcoin and PayPal, according to the latest research.
A report from CoinMetrics found that the average Tether adjusted 7-day transfer value was over $ 3.55 billion on August 20. That’s about 20% more than Bitcoin, which the research found was $ 2.94 billion.
After six months of rapid growth, the average daily transfer value of USDT has finally turned Bitcoin’s value as the remittance market share in the chain continues to grow. The recent increase in tether usage has been driven by DeFi and token swapping protocols such as Uniswap.
Economist John Paul Koning also noted that according to PayPal’s second-quarter report, the online payment giant’s average daily remittances were also lower than Tether at $ 2.94 billion.
However, PayPal’s actively monitored transactions and largely anonymous Tether transactions may not provide a fair comparison.
The world’s most popular stablecoin has also grown exponentially this year, now exceeding $ 13 billion, according to the Tether Transparency report. Since early 2020, the supply of rope has increased 225% and is showing few signs of slowing down. Bitfinex’s CTO Paolo Arduino was confident the bid could reach $ 20 billion this year:
Tether attributed the growth to the current business climate, as he tweeted that people are moving away from the old payment methods. “In these challenging and uncertain times, the benefits, security and profitability of digital currencies have come to the fore,” she said. “People are looking for alternatives to outdated banking and payment systems.”
About two-thirds of USDT is currently used on Ethereum, which slows the network and makes it more expensive to use. According to the gas station, Tether is the second-highest source of network fees, as it consumed $ 8.6 million in gas in the past 30 days.
The steadily increasing fees for using Ethereum prompted Tether to migrate a portion of its offering to faster networks such as OMG’s Layer 2 solution, EOS and Tron blockchains.