Ethereum now Powers $30 billion worth of Stablecoins
Statistics reveal that Ethereum is thehomeof $30 billion worth of stablecoins. USDT is the most popular leader, commanding a market cap of above $25 billion. Others include DAI and USDC. Stablecoins are pegged to the USD, trailing the reserve currency's performance while playing a critical role in the burgeoning DeFi space that manages over $27 billion worth of digital assets.
Ethereum is the home of DeFi, an emerging sub-sector that currently manages over $25 billion worth of digital assets. Meanwhile, the network is also the most established and secure platform, powering $30 billion of diverse stablecoins, including USDT, DAI, and USDC. These centralized assets are pegged to the greenback, providing a conduit for users to experiment on DeFi protocols and more. It is despite the low throughput of the network that's heaping pressure on Gas fees. There are plans of overhauling Ethereum's consensus algorithm from a Proof-of-Work to a proof-of-Stake system while concurrently integrating several scaling solutions like Layer-2 to address this nagging concern. Despite challenges, Ethereum's miners are reaping huge benefits, and stablecoin transfers dominate the network. In 2020 alone, the platform processed over $835 billion of stablecoins, mostly in USDT.
Impact on the ETH Price:
Neutral to bullish. While Ethereum powers $30 billion of stablecoins, it is also dominant in DeFi. The most active smart contracting network, the unsustainable high Gas fees may impact utility as users shy away from the platform, opting for alternatives even if DeFi yield farming is lucrative.
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