Altcoin Cryptocurrency News

Stablecoins see increase in on-chain volume and transactions this year

2018 was touted as the year of stablecoins. In 2019, despite being flagged as ‘risk’ to the existing financial system by the US Feds, stablecoins continued to evolve at a rapid pace. While most of the latest negative commentaries were directed towards Facebook’s proposed Libra global coin, industry players were positive about the future of the overall stablecoin industry.

Rafael Cosman, Co-Founder, and Head of Engineering of TrustToken said,

“Well, I think that stablecoins are going to find more and more use cases and it’s going to become more used in the conventional market as well and not just in crypto markets.”

Cosman, in conversation with Abra Founder and CEO Bill Barhydt, in the latest edition of Abra Money 3.0, was asked about the stablecoin scene in the next couple of years, to which he responded:

“I also think that stablecoins may start to be used under the hood in more places, let’s say in payment apps, that are international payments using stablecoins and the user might not even realize they are using stablecoin. There’s a lot of growth ahead of stablecoins and the growth in the stablecoins market in the last couple of years has been tremendous.”

A recent study by TradeBlock suggested a rise in the interest of stablecoins in the second quarter of 2019 as large corporations were eyeing to rollout their own stable digital currencies. Nearly all stablecoins saw an increase in not only their on-chain volumes but also the number of on-chain transactions. In terms of on-chain transactions, Tether [USDT] managed to outpace other large stablecoins.

Source: TradeBlock | Total Payment Volume over time

The digital asset space has presented conundrums on the regulatory front and the stablecoin sector is just a part of it. According to Cosman, Facebook’s Libra, despite facing strong headwinds from the regulators, has opened “all kinds of doors” with many notable centralized variants of the stablecoin business model looking for opportunities.

Stablecoins see increase in on-chain volume and transactions this year

cryptohero8
I am a believer of the HODL philosophy because we are still in the nascent stage of blockchain technology. Although we are in a bear market now, my outlook on the adoption and growth of blockchain solutions remains unchanged. Blockchain transactions has been growing exponentially and demand for cryptocurrency like Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Litecoin [LTC] and other Altcoins will only continue to grow exponentially in the next five to ten years.

3 Replies to “Stablecoins see increase in on-chain volume and transactions this year

  1. Stablecoins are painted as a threat to the fiat banking system worldwide but are in fact a reason for people to stay with the fiat banking system. The US Federal Reserve , the U.S. Treasury , the IMF, the World Bank and the BIS. , are all of one mind despite publicly appearing either indifferent or opposing each others values . The Stablecoins and private banking are of the same one mindedness. The purpose of Cryptocurrency was to offer an alternative to the corruption listed above. The point is stable coins that are backed by the very corrupt fiat money system should be avoided or the overwhelming percentage of people throughout the world have been managed yet again. The only stability in crypto currency is either proof of Work ,Proof of Stake or precious metals synonymous with the coins value . Attaching a coins value to the most leveraged system of money the world has ever known is of course insane.

  2. Interesting insight GS! I am not taking sides now as stablecoin helps move more fiat into the digital space for now! It makes conversion to cryptocurrency easy in the future 😀

  3. Yes, stablecoins will indeed help move more fiat currency into the digital space which makes the plausibility of easier credit facilities into everything from Mainstreet to Wall street, happen when it should not be happening. Stablecoins are directed to legitimize the fiat money systems, by allowing people to believe they are more “stable” , which is, of course, laughable. Decentralization is necessary to persuade the fiat money system into a better system, out of force. Stable coins take away all the threats. Why can’t people see that?

Leave a Reply

Your email address will not be published.