What does it mean that 80% of Bitcoin transactions originate from USDT?
Editor's Note: This article comes fromFirst class warehouse blockchain research institute (ID: first_vip1), reprinted by Odaily with authorization.
Editor's Note: This article comes from
First class warehouse blockchain research institute (ID: first_vip1)
First class warehouse blockchain research institute (ID: first_vip1)
, reprinted by Odaily with authorization.
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secondary titlebravenewcoin.comTransfer Composition of Encrypted Assets
Most crypto observers have formed the habit of observing the price of crypto assets, no matter whether the price of Bitcoin is 9000USD or 4500USD, even those who do not hold the currency will take a look. For altcoins, alternatives to Bitcoin, people have a more complicated discussion. For these people, the prices of niche currencies such as ETH XRP BCH USDT have a certain reference value, and experienced people are very familiar with the cross-relationship between trading pairs of assets.
Similarly, most experts and observers understand the concept of market capitalization, which insiders call network value, the price of an asset multiplied by the value of its circulation. Therefore, when Bitcoin's network value exceeds $100 billion, it will be in the news, although it will be less popular than the price itself. However, there is another metric that enthusiasts and laypeople alike seldom talk about — and that is the components of the transfer.
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Each token has a circulation. For example, Ripple’s XRP token had roughly 44 billion tokens in circulation as of May 2020. Therefore, its network value is approximately $8.9 billion, supply x price = network value. However, every day people trade a portion of the supply on exchanges and transfer a portion on the blockchain. So for XRP, the amount of on-chain activity in the past 24 hours has reached 2.8 billion tokens. Interestingly, only a small percentage of these transactions are in U.S. dollars.bravenewcoin.com：
The following is from
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of the form:bravenewcoin.comAs you can see, the direct exchange rate for the Turkish lira was 6.8%, the US dollar was 5%, the Korean won was 4%, and the Japanese yen was 1.3%. Tether, the dollar-pegged stablecoin, accounts for the largest share of transactions at 53.2%, followed by Bitcoin at 22.2%.
This tells us that approximately 80% of XRP’s on-chain transaction volume per day consists of the cryptocurrency. While USDT is similar to the U.S. dollar, this still means that XRP traders want to stay in the crypto space, rather than transfer to fiat dollars. Is the popularity of USDT related to transactions or transfers? I lean more towards the latter. More interestingly, Bitcoin’s trading volume could represent an arbitrage trade, or XRP transfer facilitation, or conversion to Bitcoin for security. Let’s move on to look at the daily transaction composition of some other major coins.
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The table below is frombravenewcoin.comThe composition of Bitcoin is 80% USDT and 10% USD. This clearly tells us that Bitcoin is a store of value. This is the last resort for investors to stay or leave. Bitcoin traders do not trade directly with altcoins or fiat currencies. They switched to using USDT as a pre-transaction stop or transfer.
For Ethereum ETH, fromcoinmarketcap.comThe form is as follows:
The legal currency part of the transfer on the ETH chain is limited to about 13%, and the US dollar accounts for a large part. In ETH, USD is slightly more popular than BTC, probably because of its "fuel", that is, the smart contract usage exceeds the store of value part. Similar to BTC, USDT accounts for the largest portion of transactions (68%) and may act as an enabler for transfers. It is also interesting that 17.6% of all ETH transactions are Bitcoin, and the opposite is not true (i.e. Bitcoin holders do not transfer any amount directly to ETH). I tend to think this is due to the convenience of cheaper and faster transfers. If it was for trading purposes, then we would see a mirror image of the BTC/ETH transaction.
