Stablecoins sees significant increase in on-chain transactions: report
Stablecoins are gaining acceptance in the crypto community. A new research report indicates that on-chain transactions of stablecoins have increased significantly. The research compared data from September to November and to find on-chain transaction rates of stablecoins including TrueUSD, USDC, Paxos and GUSD.
“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” read the report.
Paxos Standard, the stablecoin from Paxos Trust Company, has recorded over $1.8 billion on-chain transactions on the Ethereum blockchain in just a span of three months. Surprisingly, Paxos has overtaken USDC in on-chain transactions. USDC is the stablecoin released by the CENTER consortium with the backing of Coinbase and Circle. USDC has gained traction in the crypto community since its release and has boasted increased adoption rates.
Cryptocurrency market witnessed an influx in stablecoins after concerns revolving the most popular stablecoin heightened. Major crypto players like Coinbase and Gemini stepped into the crypto market to introduce their own stablecoins in hopes of replacing Tether. As competition burgeons for Tether, stablecoin adoption rates are increasing among the community.
Leading crypto exchanges have combined all the stablecoins on one platform to handle all the tokens on a single platform. The main goal of a stablecoin is to promote adoption of cryptocurrencies. Stablecoins are trusted by the crypto community for the fact that these tokens are pegged to a stable asset which contributes to the stability of the coin.
However, Tether has failed to furnish an audit report proving its dollar backing, while other stablecoins in the market are fully collateralized and have provided the necessary evidence to prove their reserves. Even though the competition is soaring in the stablecoin market with many coins hoping to replace Tether, it has become the sixth largest cryptocurrency in the cryptoverse.
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