The Ethereum (ETH) blockchain has evolved into a series of stablecoins. On January 29, Messari researcher Ryan Watkins stated that the stablecoin value transfer issued on the ETH chain recently reversed the number of native Ether transactions. Essentially, the value transfer from Ethereum now consists largely of stablecoins such as Tether, Pax and Dai.
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Researcher: “Ethereum’s economy is now dominated by stable value transfer”
On Wednesday, Messari analyst Ryan Watkins reported on the Ethereum blockchain and how the ETH economy is now dominated by stablecoins. The ETH chain has a large number of stablecoins such as TUSD, USDT, DAI, PAX and GUSD. All five of these stablecoins use the ETH chain for stable value transfers. “The ETH has now turned the stablecoin transfer value over to Ethereum,” tweeted Watkins. While sharing another chart, Watkins pointed out that most of the story will be consumed by the transition from Tether (USDT) to Ethereum last year. Watkins believes the flippening took place in mid-2019, stressing that since then “the Ethereum economy has now been dominated by a stable transfer of value”.
In the last week of August 2019, news.Bitcoin.com reported on the significant migration of Tether from the omni-layer network to Ethereum. At that time, ERC20 tether transactions flipped their omni equivalent. The stablecoin tether is a $ 4.6 billion network and all coins are issued and managed on chains like BTC (Omni), ETH (ERC20), EOS and Tron. After the significant migration to the ERC20 standard, a large part of the USDT in circulation comes from the ETH chain. In addition, researchers have found that 70% of the circulating tether supply is controlled by around 104 addresses. After Watkins’ tweet about stablecoins turning the chain’s local currency ether over, Binance founder Changpeng Zhao (CZ) commented on the topic.
“Many of us (early adopters) don’t like stablecoins,” tweeted CZ. “But [the] The fact is, it is needed to help us overcome the abyss as most new crypto folks will still think fiat-based for a while. I wish that weren’t the case, but we live on earth, not a utopia. “
One person disagreed with CZ, saying that certain stablecoins will likely remove revenue from trading platforms. “Very hypocritical – I totally agree with you on centralized stablecoins like Paxos – Binance USD or USDC,” the person wrote. “[But] how about crypto – secured like DAI? The truth is that [decentralized finance] Apps like Uniswap, [and] Makerdao takes a lot of income from exchanges like Binance, ”he added. However, Binance’s founder said he was not worried about this situation, stating:
The more choices for users and the more innovation for the industry, the better for all of us. Don’t worry about Binance, we will make it – we are adaptable.
Stablecoins and exchange tokens outperform the 2017-2018 ICO tokens that used Ethereum’s ERC20 standard
Another crypto proponent agreed with CZ’s assessment, saying, “This is how new technologies and ideas are usually adopted. Today’s generation needs both feet on the old and the new to feel safe and familiar with the new environment. ”Of the five stablecoins managed in the ETH chain, Tether is USDT by far the most dominant. This is followed by USDC from Circle, DAI from Makerdao, PAX from Pax Global, True USD (TUSD) and GUSD from Gemini.
Today @RyanWatkins_ reported that the transfer value of stablecoins to Ethereum has surpassed that of $ ETH. Overall, token transfers took place more frequently on Ethereum than non-token transfers. These are both signs that $ ETH is proving more useful as a currency. pic.twitter.com/cAt4hfqBLU
– Christine Kim (@christine_dkim) January 29, 2020
At the time of publication, 2.29 billion USDT are represented by ERC20 tokens and 439 million USDC tokens are also housed in the ETH chain. In addition to the total stablecoin value held on Ethereum, a large number of exchange tokens are using the chain. For example, only exchange tokens such as BNB, LEO, HT, CRO, OKB and KCS on the surface when it comes to exchange-created coins that are hosted in the ETH chain. Stablecoins and exchange tokens are by far the most widely used ERC20s today and have surpassed most of the Initial Coin Offerings (ICO) issued in 2017-2018. Observers like Watkins and others have asked whether “is it good for ETH or does it harm the ETH cash award?” Watkins discusses this topic in its latest research analysis hosted on the Messari website.
What do you think of stablecoins that are turning over ethers in the Ethereum chain? What do you think of the number of stablecoins and exchange tokens that use the ERC20 standard? Let us know what you think on this matter in the comments below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation, endorsement, or sponsorship of any product, service, stablecoin, or company. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Photo credit: Shutterstock, Twitter, Messari analyst Ryan Watkins, Fair Use, and Pixabay.
Tags in this story
Binance, Bitcoin Core, BTC, Changpeng Zhao, Circle, Cryptocurrency, CZ, DAI, EOS, ERC20, ERC20s, Ethereum, Exchange Tokens, Finance, Flip, Flippening, Flipping, Gemini, GUSD, Messari, Omni Layer, Pax, Tether, Number of transactions, tron, tusd, USDC, USDT
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Jamie Redman is the News Lead at Bitcoin.com News and a Florida-based financial tech journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. As of September 2015, Redman has written more than 4,900 articles for Bitcoin.com News on the disruptive protocols emerging today.
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