Will stablecoins become the trump card for Ethereum to reach a new level?
It would be a huge mistake to look away from Ethereum and the stablecoin network now.
The latter growth has been widely discussed in the community over the past few days, gaining enough traction earlier this month after Tether's market capitalization soared to an incredible $6 billion valuation .
However, that was two weeks ago.
Watkins, a research analyst at Messari, highlighted in a recent tweet that the daily adjusted value on Ethereum relative to Bitcoin has reached parity. This shows that Ethereum is currently moving the same funds as Bitcoin.
For now, the stablecoin market doesn’t seem to have any sign of stopping, continuing its high growth momentum, and according to Messari’s Ryan Watkins, the situation for Ethereum and Bitcoin looks Very different indeed.
This is a major breakthrough from Ethereum’s perspective, as back in July 2019, Bitcoin moved nearly $3.3 billion in value, while Ethereum barely managed about $1 billion.
However, it is worth noting that only with the help of stablecoins in 2020, the second largest digital asset in the cryptocurrency market will be able to keep pace with Bitcoin.
According to Watkins, stablecoins had their best quarter ever in the first quarter of 2020 as the collective market capitalization of all these crypto assets reached $8 billion. Surprisingly, the value added in the first quarter of 2020 even surpassed the figures for the entirety of 2019.
These assets are becoming increasingly favorable for Ethereum, as at the time of writing, more than 75% of all funds in stablecoins are settled on Ethereum’s network.
This could be a pattern, as it was previously reported that throughout 2019, USDT/ETH had taken over control completely from Bitcoin’s Omni Tether, which itself was moving most of its USDT holdings onto the Ethernet network.
Stablecoins now account for 80% of Ethereum’s daily transaction value, and it has also been found that stablecoins are worth more on average compared to Bitcoin.
Within two weeks, Ethereum has become the largest platform for stablecoin issuance, with stablecoin issuers not far behind. The positives for Ethereum are huge, as if this trend continues, the utilization of the Ethereum network could hit new highs in the coming months.
“Stablecoins are poised to triple in 2020, which could bring significant new liquidity to the Ethereum ecosystem and further solidify its position as the leading stablecoin platform,” Watkins said.
Since it has been a focus of liquidity in the past, the meteoric rise of stablecoins and Ethereum as its underlying platform could help Ethereum better fit the product market in the industry.
The original text comes from AMBcrypto, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
The original text comes from AMBcrypto, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
