Since September, on-chain stable coin transaction activity has increased by over 1000%, according to a report from Diar. This statistic does not include the billions of trades per day on exchanges.
This boost is helped in part by the number of different stablecoins that have come online over the past few months. In that same time frame, we’ve seen TrueUSD (TUSD), Paxos Standard (PAX), USD Coin (USDC), and Gemini Dollar (GUSD) raise $5 billion in value.
Improving Numbers
Interestingly, these transaction stats are much better than when Tether (USDT) was the majority stablecoin. Back then, the asset would stick within Bitfinex or similar exchanges and wasn’t traded much on-chain. This was mostly due to Bitfinex having the largest amount of Tether liquidity, which made it the ideal place to trade.
The increase in on-chain usage begs the question: why are all these stablecoins moving around?
In terms of actual numbers, TrueUSD saw the most transactions at 24,372, with USDC in second at 16,620, and PAX in third with 12,154. Interestingly, the total value of PAX transactions was higher than that of USDC, despite having around 25% fewer transactions.
A Holding Majority
In related news, a CCN reporter found that of the top five holders of GUSD, three of them seem to be Huobi-owned wallet addresses. The first- and third-ranked wallets are named Huobi_3 and Huobi_7, and together hold 51% of Gemini’s total assets, worth $44.4 million. The second highest holder is Maltese exchange OKEx, while Huobi also owns the fifth largest wallet worth $5 million. If we’re counting every Huobi wallet address, it seems that they hold 65% of all Gemini Dollars.
It’s important to point out that it’s probably not the exchanges themselves, but rather the exchange users who hold these assets. Neither of these holdings are within the Winklevoss’ Gemini exchange. This is a good sign, as it means GUSD is actually being used.
This news comes shortly after Huobi launched their own “multi-stablecoin” with the ticker HUSD. Their asset is based only in the Huobi exchange and serves as an intermediary between the different stablecoins.
The post Number of On-Chain Transactions for Fiat-Backed Stablecoins Increased by 1000 Percent in Three Months appeared first on UNHASHED.
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