Stablecoin 2019: analytics and breaking news

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“Cryptocurrencies provide decentralization of capital and stablecoins are one of the keys to bringing the benefits to everyday people through price stability.”
Rafael Cosman,
Co-founder TrustToken

Many experts have already called stablecoins a real trend of 2019 . But is that really so? How strong are these coins, are they able to compete not only with fiat currencies, but also with the leaders of crypto world? Now we’ll try to understand this question using the latest analytics and market statistics.

Stablecoins: what is the real situation on this market in 2019

To understand the main trend we’ll conduct a comparative analysis of the eight most well-known and working stablecoins.

Stablecoins leaders by July 30, 2019

Stablecoins leaders by July 30, 2019

The market dominance of the TOP-8 stablcoins based on the capitalization

Stablecoins leaders by July 30, 2019

The market dominance of the TOP-8 stablcoins based on the capitalization

The market dominance of the TOP-8 stablcoins based on the daily volumes
Comparative analysis and above charts revealed that the leading position is taken by Tether stablecoin, both in capitalization and in daily trading volumes. Let’s examine its market’ position closer.

The main indicators and features of USDT on July 30, 2019

Tether USD is based on BTC (Omni Layer protocol). In February 2018 Ethereum Tether with USDT and EURT was also launched. Later (April 16, 2019), the USDT based on TRON was launched. It was done in order to give users more freedom using and making transactions with USDT. And the market positively appreciated this approach showing impressive amounts of this stablecoin use. As of July 30, 2019, Tether’s capitalization has already exceeded $4 bln (419 957 BTC). Daily trading volume amounted to more than $15 bln (1 568 228 BTC) . Combining the steadily growing number of users, such large volumes clearly demonstrate the increased demand for USDT in real time.

Number of active and new USDT addresses, July 30, 2019

Number of active and new USDT addresses, July 30, 2019
As you can see on the chart above, the number of new addresses is kept in a relatively stable range – 5-7 thousand per day. At the same time, the number of constantly used addresses remains from 14 to 25 thousand. Such indicators show a constant demand among users of stablecoin especially due to regular useful innovations for the crypto community.

Topical summary and the USDT exchange rate, 30 July 2019

Topical summary and the USDT exchange rate, 30 July 2019

Volume and capitalization of USDT based different blockchains, May 20, 2019

Volume and capitalization of USDT based different blockchains, May 20, 2019

The ratio of the capitalization volume in percentage

The ratio of the capitalization volume in percentage

Stablecoins in 2019: the main data

But not only Tether shows good statistics. There is a positive movement by other stablecoin.

Correlation graph with the price of major stablecoins, July 30, 2019

Correlation graph with the price of major stablecoins, July 30, 2019
This chart clearly shows that the price of stablecoin is becoming less volatile. This is what users expect from a stable cryptocoin, the maintenance of a relatively flat price level on the ongoing basis.

For example, stabelcoins within the Bitshares network presented on the decentralized DEEX crypto exchange, specifically BitUSD and BitCNY, as well as BitEuro, BitGold and BitSilver. Just for this reason they become more popular. They are kept within the stable-value corridor and are almost always equal to $1, Euro or a certain amount of gold or silver.

Thus, an additional important advantage of BitShares stablecoins are:

  1. Reliability based to decentralization and use of all blockchain technology advantages;
  2. More favorable transactions and exchange terms around the world, without the influence of the banks and third parties (no additional fees, regulatory policies, etc);
  3. Lower fees while making transfers in comparison with fiat assets;
  4. Do not require constant deposit and withdrawal costs, guarantee instantaneous transactions.

BitAssets, unlike highly volatile “first generation” cryptocurrencies (BTC and ETH) can provide users with a more stable crypto portfolio. Because of this many investors want to hold such stablecoin and use them. They are no longer want to quickly resell them in order to avoid down in price as is often happens with “common” cryptocurrencies.

In addition, the total market’ volume of stablecoin is also gradually growing, occupying an increasing share in market capitalization:

Сapitalization volume ratio, July 30, 2019

Сapitalization volume ratio, July 30, 2019

Total capitalization volume ratio in percentage

The number of stablecoins is increasing. So, in the beginning of 2018 there were only 4 known stablecoins: BitUSD, Tether, TrueUSD, DAI . By the end of 2018, this amount increased by 2 times, when Paxos, USD Coin, Gemini and SUSD were added to this list. In 2019, the number of stablecoins increased to 26 currencies. The expansion dynamics of crypto market remains positive. Although, still the only 8 stablecoins hold the championship places due to highest capitalization (see the table and diagrams at the beginning of the article).

We need to note that there are much more stablecoin tied not only to the US dollar, but also to other fiat currencies: Euro, Swiss franc etc. The same applies to stablecoin correlated with precious metals. Now gold is not the only favorite, there are silver or platinum. Modern stablecoins are quite well adjusted to the market needs, they providing suitable assets for transactions in a variety of orientation and purposes.

The latest positive news are also fueled interest to different stablecoins. It has a positive effect on the demand for this type of crypto assets and on their volumes. For example, the leader among stablecoin, Tether, has recently showed an impressive growth in volume on the most active and mass markets — in China , literally excited the crypto community and attracted the attention of thousands of new users.

Summary

Stablecoin has all the chances for further development and mass adoption but it is necessary to meet the requirements of modern users. This is confirmed by an independent survey conducted in 2018 among 587 respondents.

In order to overtake fiat currencies in the rankings of most popular transaction methods stablecoin need to continuously improve and meet the requirements of much more extensive than the traditional currencies. According the annual volume growth stablecoins are quite able to take place in the online wallets of many users.

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