According to a recent report, the total transaction volume for stablecoins has gone from about $23.5 billion recorded in January 2020 to almost $384 in the same month for 2021- an astonishing 10x growth within that time-space. In the publication titled “Stablecoins: Bridging the Network Gap Between Traditional Money and Digital Value”, the authors cited the increased total supply of circulating stablecoins majority of which are ERC-20 tokens.
As of today, the Ethereum Network blockchain hosts as much as 70 percent share of the economy of this crypto assets, with Tron and Omni sitting at the top of the pyramid. Specifically, Tron occupies a whopping 26.6% of the pie, while Omni occupies a sizable 2.9%. Terra follows closely with a 0.8% share.
More Stablecoin Projects Coming Up
Despite the enormous domination of those stablecoin projects and the general absence of a fierce market competition to invite more project starters into the sector, some companies are actively working on building stablecoins on the Ethereum Network. Notable among them is Circle —the firm behind USDC. Speaking on the motivation and ambition of the team as regards the undertaking, Circle’s CEO and Internet businessman Jeremy Allaire said
Over time, we expect the costs of storing and moving value to plummet to zero just like it has for data, communications, and content. When anyone can program money, there will be fundamental shifts in how financial applications work.
Fei labs is another ambitious stablecoin project- with a stated goal to create a more capital-efficient version of the non-volatile assets. The startup was able to amass considerable attention from the ever-expanding list of private investors steadily looking for the “next big thing in crypto” to spin profits from. Coinbase, Andressen Horowitz, and Framework Ventures are just some of Fei’s project supporters.
Stablecoins are a special category of digital assets whose value is dependent on the Fiat currency to which they are pegged. Their introduction into cryptocurrencies was a major turning point in the development of blockchain projects as it paved the way for traders to access arbitration in the market.