It's well known that Ethereum's native cryptocurrency, Ether (ETH) is the world's second-largest cryptocurrency by market capitalisation. But, did you know it is not the most popular currency on its own network?
Increasing numbers of stablecoins followed in Tether's (USDT) footsteps to migrate to the Ethereum network. Still, USDT remains by far the most popular ERC20 stablecoin with unbelievable multi-Billion Dollar daily market caps. In case you wondered why it’s called Tether, it's because the tokens are backed by $1 for each token issued, so its best explained as being a hybrid between fiat and cryptocurrency as it is 'tethered’ to the value of fiat.
It seems that institutional investors have found the perfect way of on-ramping into the crypto space through UDST. This, combined with the popularity of the Ethereum network for app builders is having a significant impact on the dominance of stablecoins. Since January last year, it is estimated that, almost $900 Million is locked in Decentralised Finance Applications and with exchanges like Binance, moving more coins to the Ethereum network from its Omni-based USDT wallets. It’s hard to deny the popularity of stablecoins.
The increasing use and development of new stablecoins can be considered a clear indication that we are on the cusp of the mass adoption of digital currencies, and 2020 is set to be a fascinating time where there is sure to be much more exciting news. We’ll cover it all on the Dragon Blog so make sure you stay tuned for the latest Blockchain and cryptocurrency news from around the globe.