Tether has surpassed Bitcoin and PayPal for the average daily transfer value.
It has been reported by CoinMetrics that Tether’s 7-day average adjusted transfer value reached over $3.55 billion as of August 20.
According to the research, this is around 20% more than that for Bitcoin which was a reported $2.94 billion.
However, after six months of rapid growth, USDT average daily transfer value has finally flipped Bitcoin’s as it continues to take more and more of the market share of on-chain transfers. The recent surge in Tether usage has been driven by DeFi and token swapping protocols such as Uniswap.
According to PayPal’s Q2 report, Economist John Paul Koning observed that the daily average transfer value of the online payments giant was also less than Tether’s at $2.94 billion.
Tether is now doing $3.55 billion in daily transfer value: https://t.co/CpW34wL3jA via @coinmetrics Not bad. In Q2 2020, @PayPal did just $2.94 billion per day: https://t.co/kD3Bt9BEYF pic.twitter.com/uxaagM9pXU — John Paul Koning (@jp_koning) August 25, 2020
Likewise, actively surveilled transactions on PayPal and largely anonymous Tether transactions may not provide a fair comparison.
It has been analyzed that the world’s most popular stablecoin has also grown exponentially this year in terms of supply which has now surpassed $13 billion according to the Tether Transparency report.
Since the beginning of 2020, the supply of Tether has grown by 225% and is showing few signs of slowing down.
Paolo Ardoino, the CTO of Bitfinex, was confident supply could hit $20 billion this year.
2020, the year of Tether. The road to 20B+ and beyond. https://t.co/wiacp4RkeB — Paolo Ardoino (@paoloardoino) August 24, 2020
Moreover, Tether attributed the growth to the current economic climate by tweeting that people are turning away from archaic payment methods.
1/2 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. As the biggest, most liquid and technologically innovative — Tether (@Tether_to) August 24, 2020
Thus, it said:
“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.”
Source: Cointelegraph | Image: AZCoin News