In 2020, the capitalization of stablecoins has increased many times, but despite the growth in the size of transaction fees, Ethereum remains the most popular network for stablecoins.
According to The Block, the capitalization of stable cryptocurrencies increased from $ 5.87 billion as of December 31, 2019 to $ 28.28 billion as of December 31, 2020. The growth did not stop and even accelerated, and currently the figure has reached $ 54.59 billion. The volume of monthly transactions has grown even more – from $ 23.5 billion in January 2020 to $ 384 billion in February 2021.
USDT remains the dominant stablecoin in the market, accounting for approximately 69% ($ 37.56 billion). The capitalization of USDC is gradually increasing and now stands at 17% ($ 9.51 billion). In third place was the BUSD coin with a result of 5.8% ($ 3.19 billion).
As of January 2021, approximately 70% of the total volume of stable cryptocurrencies circulates on the Ethereum network. Tron’s share was 26.6%, and the Omni Bitcoin blockchain holds approximately 2.9% of the total stablecoin supply. Jeremy Allaire, founder of Circle, which issued the USDC stablecoin, said:
“Over time, the cost of storing and moving funds will drop to zero, as it did with data, communications and content delivery. When anyone can program their own money, there is bound to be a fundamental shift in how financial applications work. ”
Earlier, JPMorgan analysts warned that if investors lose faith in the stablecoin Tether, the bitcoin rate could collapse.