What ‘crypto winter’? Global stablecoin monthly on-chain volume hits an all-time record
Stablecoins have been cast into the spotlight over their different uses and role in the ongoing crypto market crash. The development of stablecoins within the cryptocurrency community is being emphasized by volume that is hitting new milestones.
In this case, as of August 2022, on-chain stablecoin volume almost hit the $1 trillion mark after recording consistent growth in the last two years, data by CoinMetricsindicates.
On-chain stablecoin volume. Source: CoinMetrics
Growing stablecoin popularity
The growth aligns with the popularity of stablecoins, characterized by increasing global use cases.
The enthusiasm for stablecoins is highlighted by WeTrust platform maintainer Patrick Long, who stresses that they stand out due to their year-long use.
Stablecoins is one of the biggest use cases of crypto blockchains.
Initially, the use of stablecoins within the crypto sector was tied to acting as a safe haven in cases of increased volatility. However, the use cases have since multiplied, especially with the growing popularity of decentralized finance (DeFi) applications.
In this line, several cryptocurrency firms have increasingly focused on embracing stablecoins in a bid to control the highly competitive market. For instance, cryptocurrency exchange Binance has announced plans to remove access to three stablecoins that compete with its own, dubbed Binance USD (BUSD).
From September 29, the exchange will automatically turn users’ USD coin (USDC), Pax dollar (USDP), and trueUSD (TUSD) holdings into BUSD.
At the same time, different jurisdictions have raised concerns about the financial risks posed by stablecoins. The concerns were accelerated with the Terra (LUNA) ecosystem crash that was triggered after the platform’s stablecoin TerraClassicUSD lost its dollar peg.
Concerns about stablecoin popularity
Most of the concerns have been due to the private nature of stablecoins considering that the Terra ecosystem crash has been linked to mismanagement by officials at the company. Notably, investigations are ongoing regarding the allegations of fraud in the collapse.
It is worth mentioning that some of the early stablecoin regulation initiatives have seen U.S. states like New York release specific regulations targeting the sector.
At the same time, other jurisdictions are exploring using stablecoin to power transactions. As reported by Finbold, the Russian Ministry of Finance (Minfin) announced it was ready to support the legality of transactions in the country through stablecoins.
According to Russian government officials, using stablecoins minimizes risk and works better than traditional settling transactions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
SEC Chair Gary Gensler has garnered attention for his notably cautious yet controversial approach to crypto, along with spearheading an assertive enforcement campaign targeting prominent companies within the crypto sector.
KikyoSocial media platforms, particularly Meta's, are increasingly targeted by scammers worldwide, raising concerns about user safety and the effectiveness of platform moderation. Despite efforts to combat scams, Meta's response to fabricated news and inadequate safety measures underscore the ongoing challenge of protecting users from online threats.
WeatherlyBitcoin briefly dropped to $60,888, triggering a $140 million liquidation across the entire cryptocurrency market, while the U.S. Bitcoin spot ETF faced renewed capital outflow challenges.
AlexReporters from "China Business Journal" learned that on May 7th local time, TikTok and ByteDance filed a lawsuit in U.S. federal court, seeking a ruling that the "Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act," which aims to ban TikTok, is unconstitutional, and to prevent the enforcement of the law. In the lawsuit, TikTok stated, "This is the first time in Congress's history that a law has been enacted to impose a permanent, nationwide ban on a specific speech platform."
MiyukiMiyukiU.S. financial giants, including Citibank and JPMorgan, are collaborating to leverage distributed ledger technology to explore the centralized settlement of multiple assets on a single platform.
WeiliangAmidst the chaotic landscape of meme coins, one project emerges with a bold vision: SCREAM. It endeavours to reshape our perception of meme coins and omit aimless token surfing.
Catherine$21M worth of wstETH returned to ZKasino's multisig wallet, renewing victims' hope amid investigations and arrests following the alleged exit scam.
WeiliangNigeria dismisses Binance's bribery claims, urging the crypto exchange to address money laundering and tax evasion allegations amid escalating government scrutiny.
AlexArgentinian President Javier Milei met with Musk and announced that the country will use natural gas to mine Bitcoin, aligning with a pro-cryptocurrency stance.
Miyuki