It seems that Tether (USDT)’s average daily transfer value has managed to surpass both PayPal and Bitcoin. This comes according to the latest research done by CoinMetrics.
$3.55 Billion In Average Adjusted Transfer Value
The report detailed that the 7-day average adjusted transfer value of Tether has reached more than $3.55 billion on the 20th of August, 2020. This stands as a staggering 20% more than the same value for Bitcoin, which had reported $2.94 billion, according to the research.
USDT has seen extremely rapid growth throughout the past six months. With this, the average daily transfer value of USDT has finally managed to overtake Bitcoin. This is due to it taking greater and greater parts of the market share regarding on-chain transfers. Tether saw such a massive surge primarily thanks to token swapping and DeFi protocols, such as Uniswap
Beating BTC and PayPal
John Paul Koning, an economist, made the observation regarding the Q2 report of PayPal. According to Koning, the daily average transfer value for PayPal is also less than that of Tether, standing at just $2.94 billion.
— John Paul Koning (@jp_koning) August 25, 2020
Even so, one must take into consideration how different PayPal is to Tether. In regards to this, it may not be fair to compare PayPal’s transactions, having active surveillance, to the predominantly anonymous transactions of Tether.
Tether stands as the most popular stablecoin the world has to offer, and has seen exponential growth regarding supply throughout this year. As it stands now, its supply had surpassed the $13 billion mark, according to a report made by Tether Transparency. Since the start of 2020, Tether’s supply has seen growth by the tune of 225%. Even so, few signs point to the coin actually slowing down its increase of supply. Paolo Ardoino, the CTO of Bitfinex, stated that he was confident that the USDT supply could be as much as $20 billion by the end of this year.
Strange Times Make For New Opportunities
Tether gave comment about its massive growth, as well. According to the firm itself, its growth is primarily due to the current economic climate.
1/2 Amid these uncertain and challenging times, the utility, security and viability of digital currencies have come to the forefront. People are looking for alternatives to antiquated banking and payment systems. As the biggest, most liquid and technologically innovative
— Tether (@Tether_to) August 24, 2020
Tether explained that people are increasingly opting out of archaic payment methods within these challenging, uncertain times. As such, Tether highlighted that the viability, utility, and security of cryptocurrencies have pushed it to the forefront in a time when people are looking for alternatives to the conventional payment and banking systems.
As it stands now, two-thirds of the total USDT supply is being used on Ethereum. This, in turn, is slowing down Ethereum’s network and making it more expensive to use. The Ethereum community is hard at work trying to remedy this new problem, in the meantime.