Along with stablecoins running on the Ethereum network, ETH handled transactions worth $ 1.6 Trillion last year.
This pointed out that, according to a report from the Consensys team, most stablecoin transactions on Ethereum are handled through Tether (USDT), USD Coin (USDC) and DAI.
Ethereum transaction volume
This year, the annual transaction volume for ETH was $ 385 billion, but Tether’s USDT token was $ 580 billion in Ethereum, Circle’s USDC stablecoin was $ 239 billion in Ethereum, and MakerDAO’s DAI stablecoin was $ 98 billion.
As a result, it handled approximately US $ 1.6 trillion in stablecoin and ETH on Ethereum in 2020.
Stablecoins: a bridge between traditional finance and crypto
Additionally, the report went on to explain that stablecoins are a vital bridge between traditional finance and crypto markets. Stablecoins are at the center of activities such as borrowing and lending with crypto derivatives that use them as base value.
Additionally, some knowledgeable people use stablecoins to hedge against the depreciation of local currencies. The report gives an example of individuals in Brazil using USD-based stablecoins as an alternative to the native Brazilian currency.
In terms of regulation, the team at Consensys stressed that the rise of stablecoins has prompted some governments to consider ways of drafting laws that allow them to exist in an acceptable environment. The same governments are exploring ways to issue their digital currencies on various smart contract platforms, with respect to Central Banks.