It’s been revealed that Tether could be replacing Bitcoin as the dominant currency on public blockchains, according to Ryan Watkins from Messari.
The research analyst said the fact that the overall stablecoin market monetary base has been growing a lot in the first half of 2020.
Stablecoin monetary base is growing
In the first quarter, the stablecoin monetary base “surged by $2.4 billion and another $3.8 billion in the second quarter to bring the base to a total of over $12 billion,” according to the data coming from the online publication the Daily Hodl.
The expert notes that Tether grew by $3.5 billion en route to becoming the first stablecoin to move above $10 billion.
First a 40,000 for view of the market.
In Q1 2020 the stablecoin monetary base grew $2.4 billion to just over $8 billion.
In Q2 2020 another $3.8 billion was added onto the base, bringing it to over $12 billion.https://t.co/ZqVWnp6zBr
— Ryan Watkins (@RyanWatkins_) July 20, 2020
Another thing worth noting is that Tether is also closing in on Bitcoin in terms of the daily transaction value.
In absolute terms USDT contributed the most by far, growing $3.5 billion, and became the first stablecoin to breach the $10 billion mark.
However, the fastest growing stablecoin relatively was sUSD, which benefited from the growth of DeFi, Synthetix, and a low starting base. pic.twitter.com/6fHaxHH2Ra
— Ryan Watkins (@RyanWatkins_) July 20, 2020
Watkins says sUSD (synthetic US dollar) has the fastest relative growth in the pegged-asset market.
He made sure to highlight the fact that the sUSD benefited from the growth of decentralized finance (DeFi) and a low starting base.
Zooming out, BUSD is the fastest growing stablecoin in 2020, in large part due to its fee promotion program that incentivizes BUSD liquidity providers.
In dollar amount BUSD has grown $143 million, more than every stablecoin other than USDT and USDC. https://t.co/qTF90kARPh
— Ryan Watkins (@RyanWatkins_) July 20, 2020
He said that the stablecoins are about to transact $508 billion this year.
