The market capitalization of Ethereum-based stablecoins surpassed USD 37 billion on March 31, 2021, registering an increase of almost 50% compared to the USD 19 billion it marked on January 1 of this year.
The number of stablecoins in circulation during the first quarter of this year was 7 times higher than in the first quarter of 2020 and All of this growth was matched by the rally in decentralized finance (DeFi). This is what the firm ConsenSys points out in a report published this Friday, April 30.
The report makes sense of all this growth correlated by how stablecoins have become the main medium of exchange in the DeFi ecosystem. Users use them to obtain returns through loans, a return on investment as a liquidity provider or as collateral for synthetic products.
For that reason, “Ethereum is emerging not only to be the settlement layer for almost all leading decentralized applications or Dapps, but also for almost the entire ecosystem of digitized dollars,” as the paper notes.
The total stablecoin supply on March 31 was approximately $ 42 billion, an increase of more than 4 times than the total supply at the end of the fourth quarter. Even traditional financial services companies such as Visa will allow settlement of transactions with USDC on Ethereum, showing that stablecoins are moving well beyond traditional cryptocurrency use cases.
DeFi report for the first quarter of 2021 by ConsenSys.
Tether is still the king of stablecoins
Most DeFi applications are built on Ethereum, and the use of stablecoins is one of the key strategies of transacting in them, being Tether (USDT) the king of this market, as reported by CriptoNoticias since last year.
In the last six months the USDT market registered a 170% growth to reach the $ 50 billion mark taking a new momentum after Coinbase included it in its professional trading platform.
The record for the highest average coins in circulation keeps it in first place in the ranking of pinned currencies, followed by Circle’s USD Coin (USDC), which is a distant second with a market capitalization of just under $ 13,600. millions.