The current highly volatile bear market is scaring many investors away. However, not all crypto is going through hardship. Stablecoins, which are fiat currency-pegged, have seemed to gain, according to a new report by Diar.
The group, which describes itself as “Weekly Institutional Publication and Data Resource Analyzing Digital Currency & Assets,” emphasizes that stablecoins’ popularity has grown immensely in the past few months.
“A whopping 1032% increase in on-chain transactions took place in November vs. September breaching the $2.3Bn mark at the close of last month,” its latest report reads.
For example, Paxos, which managed to raise over $93 million in total, has recorded over $1.8 billion on the Ethereum blockchain alone in the past three months. That is twice more than USDC which is backed by Coinbase and Circle.
The only stablecoin which was doing relatively unwell was TrueUSD: according to the report, it has seen a slight decline in the total on-chain transactions value. However, “it did indeed double in the number of transactions vs October.” Thus the coin managed to successfully secure significant market share since its public issuance in early March.
“To date, all four major stablecoins, USDC, TUSD, GUSD, and PAX, have breached the $5Bn in on-chain transactions within a short 3-month period,” the report indicates.
This is an impressive number, as GUSD, for example, was launched by the Winklevoss brother only two and a half months ago. Back then, the famous fraternal duo expressed hope that the crypto “will become a digital cash, bringing together the best of fiat and blockchain assets.”
Tether is losing its appeal
The report also mentions the controversial Tether (USDT) which has still not fully proven that it is USD-pegged since it was audited by a private Washington-based company. The authors stress that “concerns around Tether escalated last month which highlights a key-factor in users switching over to a different pegged cryptocurrency.” Indeed in October, the coin traded at $0,98-0,99 which is below its bottom price of$1. Also, rumors emerged that Binance was delisting USDT. The news turned out to be fake and in late November Binance in an endeavor to support more stablecoins’ trading pairs renamed its Tether Market to be a combined Stablecoin Market (USDⓈ). The coin’s current price is once again $1, so its popularity might soon increase again.
The report comes right after Bitfinex and its spin-off Ethfinex announced that it is listing USDC, TUSD, PAX, and GUS alongside USDT which had been the only available USD-pegged coin prior to that together with DAI.
During the announcement, Ethfinex representatives noted that stablecoins are a “fantastic opportunity” for the cryptomarket because they pave the way for a wider blockchain adoption.