Stablecoins surpass Venmo in total on-chain transactions
Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji)Editor's Note: This article comes from
Blue Fox Notes (ID: lanhubiji), author Tradeblock, translator KevinC", reprinted with authorization by Odaily.Foreword: In 2019, stablecoins, especially USDT, achieved rapid growth, and its total transaction volume also exceeded Venmo. Looks like a good trend. However, we should see one thing: Whether it is Venmo or other traditional payment providers, they deal with payments in daily life and work, and come from the needs of hundreds of millions of people for shopping and other scenarios. Stable currency, no matter how large the transaction volume is, its main scenario is the transaction scenario of digital currency. It has not really been applied to offline shopping scenarios on a large scale. The article published by Blue Fox Notes before "
The main user scenarios of stablecoins: payment or transaction?
" mentioned that this is a good start, but it will take time. We need more patience. Only when it is truly integrated into people's daily payment can it be invincible and rooted in this world.
Stablecoins have gained a lot of attention over the past few years. In mid-2018, several stablecoin projects launched with much fanfare. More recently, interest in stablecoins has been on the rise as large corporations have also started launching their own stablecoins. Earlier this year, JP Morgan released its own stablecoin, JPM Token, on a private blockchain. And Facebook also released the highly anticipated Libra stablecoin white paper, which has aroused all kinds of strong attention and even various opposition.
A common key metric for measuring stablecoin adoption relative to traditional payment providers is on-chain transaction volume. The following is mainly to observe the adoption of stablecoins by analyzing the transaction volume indicators on the chain.
The chart below compares TPV (total payment volume) between the top five stablecoins and Venmo. For a particular stablecoin, an on-chain transaction refers to the transfer of value between wallet addresses. On-chain transactions do not include transactions that occur on centralized exchanges.
TPV over time
(Data: TradeBlock and Etherscan)
Additionally, the transaction fees for sending stablecoins over the Ethereum network contrast starkly with the transaction fees associated with the Venmo service. Across the five largest ERC-20 tokens, all user transfers totaled more than $37 billion, paying $827,000 in network fees to Ethereum. Over the same period, payments to Venmo for related services are expected to reach $150 million. (Blue Fox Note: The difference in handling fees here is an astonishing 180 times.)
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The Rise of the Tether Stablecoin
We analyzed the largest stablecoins and found that Tether recently hit its highest point in terms of on-chain transaction activity on Ethereum. In addition, we also found that almost all stablecoins in this category have seen an increase in on-chain transaction volume and transaction count. Below are on-chain transactions over time for the largest ERC-20 stablecoins.
Stablecoin on-chain transactions (annual)
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(Data source: TradeBlock and Etherscan)
