Stablecoin volume on Ethereum (ETH) is now up to 5 times greater than the on-chain volume of the network’s native token, ETH, a new report from blockchain analytics firm Glassnode reveals.
More precisely, the combined volume of all stablecoins on Ethereum surpassed the ETH volume a year ago, and has now reached a level above 5 times higher, with occasional volume spikes as high as 7 and 8 times the ETH volume.
The change has occurred as on-chain volume of Tether (USDT), in particular, has grown steadily over the past year and a half, while ETH on-chain volume has largely been in decline month-for-month over the past year.
Tether remains by far the most popular stablecoin in the market, with the report saying it is “virtually dwarfing all others.” The USD-pegged token made up 79.1% of all stablecoin volume on Ethereum in May, and is “practically without competition,” according to Glassnode.
Meanwhile, the picture in favor of Tether becomes even more extreme when looking at the distribution of transaction fees paid on the Ethereum network.
“In May 2020 92.8% of all fees spent on stablecoin transactions in Ethereum are used for USDT transfers, followed by PAX (3.2%), USDC (2.6%), and DAI (0.8%),” the report said.
Glassnode’s findings comes in addition to a finding by analysis firm Coin Metrics last week, which said that Tether issued on the Ethereum network is “particularly well-distributed” among holders, compared to competitors like Gemini Dollar (GUSD), Binance USD (BUSD), USDK, and HUSD.