Ethereum caught up with Bitcoin in the value of transferred assets thanks to the growth of stablecoins
Ethereum has caught up with bitcoin in the value of transferred assets, according to the analytical portal Messari.
When calculating the value for Ethereum, analysts take into account not only its native cryptocurrency ether, but also ERC20 tokens. In the past year, the value of assets transferred via the Ethereum blockchain has grown gradually, starting from $ 0.3 billion in April. In February-March of this year, there was a sharp jump, as a result of which the average daily value is now about $ 1.5 billion..
The value of assets transferred through the bitcoin blockchain in the same segment, on the contrary, has decreased and also amounts to about $ 1.5 billion.
The significant growth in the Ethereum indicator is primarily associated with an increase in interest in stablecoins. In the first quarter of 2020 alone, their volume grew by more than $ 2.4 billion, which is only slightly less than the indicator for the whole of 2019. Analysts attribute the observed dynamics to the flight of investors to more predictable assets amid instability in the global economy due to the coronavirus pandemic.
As a result, stablecoins now account for about 80% of all assets transferred through the Ethereum blockchain. Tether, TrueUSD, and USD Coin, the leading stablecoins by market cap, use Ethereum as the backbone of their infrastructure.
Last year, Tether made the decision to move most of its Omni tokens to Ethereum. Thus, the network of the second largest cryptocurrency became the main one for moving large amounts of digital assets. The average stablecoin transaction amount is twice the average payment using bitcoin.
It is expected that in 2020, if the current trend continues, stablecoins will outperform last year by 4 times. One of the results of this scenario may be Tether’s exit to the second place in terms of capitalization among all assets of the crypto market.
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