According to the latest report by research firm Diar, four major stablecoins – USDC, True USD (TUSD), Paxos (PAX) and the Gemini dollar (GUSD) – have breached the $5Bn mark in on-chain transactions within the three-month period.
November also saw an increase of a “whopping” 1,032% in on-chain transactions of these stablecoins to date compared to September, reaching a trading volume of more than $2.3 billion for the month.
Diar notes that Paxos has recorded over $1.8 billion on the Ethereum blockchain alone in the past three months. The figure is double the number of Coinbase/Circle backed USDC.
According to the publication, TrueUSD was the only dollar-pegged cryptocurrency to see a slight decline in the total on-chain transactions value in November, however, its number of transactions doubled compared to October.
“Stablecoins have found massive growth in adoption in the past several months as many began coming online. Concerns around Tether escalated last month which highlights a key-factor in users switching over to a different pegged cryptocurrency,” the report says.
Although Tether (USDT) is still by far the biggest one in terms of transaction volume ($3.162 billion in the past 24 hours), its dominance, as reported by Blockcrypto, dropped to a 3-year low this week as it fell to less than 73%. Just three months ago, Tether’s dominance was still hovering around 96%.
Per the publication, this decline in dominance can be explained by 2 factors: 1) the rise of new stablecoins and 2) Tether destroying almost a third of its supply.
This has resulted in a sharp decline in Tether’s market capitalization, bringing it down from USD 2.8 billion in early October to roughly USD 1.8 billion today.
Nevertheless, with Bitcoin Cash still trying to recover from the from the recent hard fork hash rate wars and the overall market recession, Tether has climbed up the fifth place in terms of market cap, just some $0.31 million behind the fourth-placed Stellar Lumens (XLM).
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