Use of Tokens anchored to the dollar decreased in 2018.
A report by the company TradeBlock, provider of institutional trade tools for cryptoactives, determined that tokens “anchored” to other assets, known as stablecoins, during 2018 lost share in the cryptocurrency market, against the US dollar.
According to the study published this February 28, the US dollar became the currency most exchanged with the crypto-active in the exchange houses that operate in the United States, despite the growth of the number of stablecoins during the year 2018.
Among the causes of this situation, the firm highlights that the gradual decline in the prices of cryptocurrencies throughout 2018 caused many investors to lose interest in cryptoactives, generating a reduction of more than 80% in trading volumes in the US exchange platforms. A fact that indicates that the stablecoins calls are not unrelated to what happens in the crypto market.
In this way, the anchored tokens, which are mainly used as a mechanism for exchange of cryptoactives between exchange houses, were losing ground. As an example of this situation, the company points out that at the beginning of 2018, Tether (USDT), the token anchored to the dollar with the highest capitalization in the market, for the month of January 2018 had almost 40% of the total volume of transactions between bitcoin and a stablecoin. This percentage decreased steadily throughout 2018, giving the dollar a greater share.
It is estimated that as the interest in cryptocurrencies decreased, some investors began to change the cryptoactives for US dollars, instead of changing them for stablecoins. Analysts assume that the transactions probably occurred to withdraw US dollars and transfer them to bank accounts, in order to make daily payments.
The trend of the anchored tokens had a slight rebound between November and December 2018, shortly after the emergence of stablecoins such as PAX and Gemini Dollar and USD Coin, which were launched in September 2018.
This rebound, which was due to a greater commercialization of the new cryptoactives, occurred in the context of a worsening of the fall in the prices of bitcoin and the publication of several reports that called into question the solvency of Tether. However, in 2019, the downward trend in its commercialization was again presented, in conjunction with the rest of the cryptoactive and bitcoin futures, according to the analysis.
TradeBlock analysts note that the so-called stable tokens are used mainly as a mechanism for the exchange of cryptoactives between exchange houses, rather than as means of transaction in the chain of blocks. Therefore, they usually participate in the market as commercial pairs with other digital currencies. To this end, Tether is the cryptoactive with the highest market share, although USD Coin managed to place itself in second place in the period studied.
The report also notes that DAI, a token that is not anchored to the dollar but to another cryptoactive (ETH), registered the highest number of chain transactions (those in which the assets move between different exchange houses). This despite having the smallest market capitalization among the stablecoins analyzed.
In a graph that shows the number of transactions in the chain in a recent period of five days, the firm shows how DAI and USD Coin occupy the first and second place, respectively. Followed by PAX, in third place, and Gemini Dollar, in the fourth.
This higher level of adoption of DAI is attributed by analysts to the fact that the token – mainly used in the so-called decentralized platforms (DEX) – began to be quoted in Coinbase, a centralized exchange house.
Everything seems to indicate that Tether, although maintaining its leadership, has regressed in its position of dominance of a sector of the market, due to the entry of new competitors. Its dominance fell to 78% last November, among the eight tokens anchored to the dollar registered in the site StablecoinsWar.
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