{"id":139772,"date":"2020-07-21T15:00:54","date_gmt":"2020-07-21T14:00:54","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=139772"},"modified":"2020-07-21T00:16:15","modified_gmt":"2020-07-20T23:16:15","slug":"tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value\/","title":{"rendered":"Tether (USDT) is about to pass Bitcoin&#8217;s average daily transaction value"},"content":{"rendered":"<p>The stablecoin sector has been seeing tremendous growth throughout the past year. This has led Tether\u2019s daily transaction value to nearly flip that of Bitcoin.<\/p>\n<p>The growth this fragment of the crypto market has seen is rooted in the global flight towards the U.S. Dollar \u2013 which is widely considered a \u201csafe-haven\u201d currency \u2013 as well as the ongoing DeFi boom.<\/p>\n<p>This has driven massive inflows into the monetary base of the stablecoin market, which is now worth over $12 billion.<\/p>\n<p>Despite there being many competitors and significant controversy, Tether (USDT) still has firm dominance over its peers, also becoming the first stablecoin to build a market cap of over $10 billion.<\/p>\n<h2><strong>Stablecoin sector sees massive growth in the first half of 2020<\/strong><\/h2>\n<p>The first couple of months in 2020 were quite slow for stablecoins, as investors were keen on capturing the upside seen by Bitcoin and most of its smaller counterparts.<\/p>\n<p>Once the <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">benchmark cryptocurrency<\/a> began flashing signs of weakness after its $10,500 rejection, however, rattled investors fled to stablecoins.<\/p>\n<p>The growth these tokens saw was further perpetuated by fears of an economic decline. These fears reached a boiling point when the stock market and crypto market cratered in tandem, with this decline leading Bitcoin to lows of $3,800.<\/p>\n<p>From here, the growth of the DeFi ecosystem and continued fears regarding global economic turmoil has fueled stablecoins' continued rise.<\/p>\n<p>Ryan Watkins, a researcher at Messari, explained in <a href=\"https:\/\/twitter.com\/RyanWatkins_\/status\/1285236947036901376\">a recent post<\/a> that the growth these tokens saw in Q1 and Q2 has allowed their aggregated market cap to briefly surpass $12 billion.<\/p>\n<blockquote><p>\u201cIn Q1 2020 the stablecoin monetary base grew $2.4 billion to just over $8 billion. In Q2 2020 another $3.8 billion was added onto the base, bringing it to over $12 billion.\u201d<\/p><\/blockquote>\n<p>According to <a href=\"https:\/\/cryptoslate.com\/cryptos\/stablecoin\/\">CryptoSlate's proprietary data<\/a>, the aggregated stablecoin ecosystem now has a market capitalization of $11.55 billion.<\/p>\n<figure id=\"attachment_139776\" aria-describedby=\"caption-attachment-139776\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-139776\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM-1024x370.png\" alt=\"\" width=\"1024\" height=\"370\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM-1024x370.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM-300x108.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM-768x278.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM-1536x555.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-20-at-11.42.32-AM.png 1782w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-139776\" class=\"wp-caption-text\">Data Source: CryptoSlate<\/figcaption><\/figure>\n<h2><strong>Tether\u2019s growth may soon make it the most dominant currency on a public blockchain<\/strong><\/h2>\n<p>The growth <a href=\"https:\/\/cryptoslate.com\/coins\/tether\/\">Tether<\/a> has seen in recent weeks may soon allow it to surpass Bitcoin as the most dominant currency on a public blockchain.<\/p>\n<p>While looking towards the two digital assets\u2019 average daily transaction value over a rolling 30-day period, USDT\u2019s is currently sitting just below $1.75 billion, while Bitcoin\u2019s is just a hair above this level.<\/p>\n<p>Watkins also <a href=\"https:\/\/twitter.com\/RyanWatkins_\/status\/1285236945354981381\">spoke about this<\/a> while referencing the chart seen below.<\/p>\n<blockquote><p>\u201cUSDT may soon surpass Bitcoin as the dominant currency on public blockchains.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_139773\" aria-describedby=\"caption-attachment-139773\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-139773\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Messari-1024x576.jpg\" alt=\"Bitcoin Tether USDT Stablecoins\" width=\"1024\" height=\"576\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Messari-1024x576.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Messari-300x169.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Messari-768x432.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Messari.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-139773\" class=\"wp-caption-text\">Data Source: Messari<\/figcaption><\/figure>\n<p>Because the \u201cyield farming\u201d trend is still driving massive user inflows to USDT, and Bitcoin\u2019s consolidation phase is causing its daily transaction value to slide, it is a strong likelihood that Tether will soon flip BTC on this front.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The stablecoin sector has been seeing tremendous growth throughout the past year. This has led Tether\u2019s daily transaction value to nearly flip that of Bitcoin. The growth this fragment of the crypto market has seen is rooted in the global flight towards the U.S. Dollar \u2013 which is widely considered a \u201csafe-haven\u201d currency \u2013 as [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":95061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,32631],"tags":[60786],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tether (USDT) is about to pass Bitcoin&#039;s average daily transaction value<\/title>\n<meta name=\"description\" content=\"The stablecoin sector&#039;s growth over the past several months has led Tether\u2019s daily transaction value to nearly flip that of Bitcoin.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tether (USDT) is about to pass Bitcoin&#039;s average daily transaction value\" \/>\n<meta property=\"og:description\" content=\"The stablecoin sector&#039;s growth over the past several months has led Tether\u2019s daily transaction value to nearly flip that of Bitcoin.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-21T14:00:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-20T23:16:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/12\/tether-fourth-market-cap-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/tether-usdt-is-about-to-pass-bitcoins-average-daily-transaction-value\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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He owns a non-life-changing sum of Bitcoin and enjoys day trading.","url":"https:\/\/cryptoslate.com\/author\/cole-petersen\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/139772"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=139772"}],"version-history":[{"count":1,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/139772\/revisions"}],"predecessor-version":[{"id":139779,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/139772\/revisions\/139779"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/95061"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=139772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=139772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=139772"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=139772"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=139772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}