The world’s most popular stablecoin, Tether (USDT), has been driven to new heights by the explosion in transactions and token swapping.

According to a recent ‘State of the Network’ Coin Metrics report, Tether’s weekly average adjusted transfer value has finally flipped Bitcoin’s.

That value has reached over $3.55 billion per day as of Aug 20, which is roughly 20% more than that for Bitcoin, reporting $2.94 billion.

Tether BTC transfer value
Tether vs BTC Average Transfer Value – Coin Metrics

The researched attributed DeFi applications like Uniswap and Curve for the surge in USDT usage, adding; “This is a big milestone for stablecoins as Tether continues to take more and more of the market share of on-chain transfers.”

Economist John Paul Koning commented that PayPal’s daily average transfer value was also less than Tether’s according to its Q2 report.

He also cited a recent Chainalysis report and suggested that there could be an increased capital flight from China as over $50 billion in cryptocurrency traveled from East Asia to addresses in other regions over the past year.

Tether is by far the most popular stablecoin in East Asia, making up 93% of all stablecoin value transferred by addresses in the region. Around $18 billion of the $50 billion has been moved using Tether. Chainalysis debunked the capital flight theory, however, stating;

It’s highly unlikely that all of this is capital flight. Much of it is likely related to mining activity, as we’ve heard anecdotally that China-based miners or their counterparties often convert newly-mined coins into Tether before sending it on to larger exchanges serving more regions

According to the Tether Transparency report, the total supply is now in excess of $13 billion, though crypto analytics websites such as CoinMarketCap still report it the total at $10 billion.

Coin Metrics also noted the milestone and Tether’s rapid growth. The USDT supply was less than $10 billion on June 1, and less than $5 billion on March 1, 2020. This year alone, USDT supply has expanded by 225% as the stablecoin continues to be integrated into more networks.

 

According to ETH Gas Station, Tether is the second-highest source of Ethereum network fees, with a gas usage of $8.6 million over the past thirty days. This has prompted it to seek faster and cheaper alternatives such as the Layer 2 OMG Network. The researchers noted that as a result, OMG’s daily active addresses have already shot up to their highest levels since August 2018.

Tether stated that uncertainty could be driving people to seek out better payment methods;

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.

The trend is set to continue as DeFi markets make new milestones on a regular basis, so it shouldn’t be long before the USDT supply hits $20 billion.

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Source: Be In Crypto