Analytical firm CoinMetrics has estimated that the daily adjusted value transferred in stablecoins reached a record $5bn, of which $2.9bn was in transactions on the Ethereum blockchain.
The daily adjusted value of stablecoin transactions recently surpassed $5B for the first time ever, with Tether issued on Ethereum contributing the lion’s share with $2.9B pic.twitter.com/U5kQtPb64P
— CoinMetrics.io (@coinmetrics) July 30, 2020
The sharp uptick in stablecoin activity comes amid Bitcoin rally above $11,000.
Smoothed seven-day moving average of the value transferred in USDT, DAI, USDC and BTC. Source: Glassnode
The head of Crypto Quant’s analytics service, Kai Young Ju, noted that stablecoin whales are transferring a sizeable portion of stablecoins to exchanges. He added that Bitcoin whales are doing the same. In his view, the ‘battle’ between these market participants will determine the future direction of the leading cryptocurrency.
#BTC whales are sending Bitcoins to exchanges. #Stablecoin whales are sending stablecoins to exchanges as well.
This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy/sell pressures. https://t.co/15iFYpf48t pic.twitter.com/ijCB7B44v0— Ki Young Ju (@ki_young_ju) July 30, 2020
In mid‑July, the aggregate value transferred in stablecoins briefly surpassed that of Bitcoin. The leadership was made possible by a higher turnover velocity, surpassing BTC and ETH, as well as by the issuance of stablecoins.
A week ago, Tether’s market capitalization remained above $10bn. Earlier ForkLog reported that over the past seven days authorized the issuance of 540 million new USDT tokens.
According to the Tether site, on the Ethereum blockchain $6.39bn worth of USDT has been issued from the total circulating supply of $10.94bn. The figure on the Tron network reached $3.45bn. According to Messari, 65% of the total supply of all stablecoins has been issued on Ethereum.
ForkLog previously published a piece on the impact of stablecoins on the cryptocurrency market.
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