Reportedly, on-chain stablecoin transactions have surpassed the number of transactions on Venmo. Venmo is a mobile service owned by PayPal. In Q2 of 2019, the number of on-chain stablecoin transactions on Ethereum alone surpassed Venmo’s to transfer more than $37 Billion.
Moreover, the increase was primarily witnessed during Q2 of 2019. Tether was put under a lot of surveillance in the past couple of months by the New York Attorney General. Nevertheless, USD-Tether transactions on the Ethereum blockchain accounted for the majority of the transactions out of the $37 Billion.
Tether was initially built on OMNI, but later the migration to Ethereum and Tron has happened significantly since the starting of this year. Furthermore, other stablecoins like DAI, TUSD, USDC, and Paxos, which follow the ERC-20 standard, also contributed to the volume.
The study accounted only for the On-chain transactions, while excluded the trading on Exchanges. Hence, by eliminating the speculative aspect of cryptocurrencies, the data reflected the authentic use of these as a medium of Exchange.
Stablecoins have received a lot of attention since the beginning of this year beginning with JP Morgan’s announcement of the JPM Coin. More recently, Walmart also filed a patent for a Walmart Coin, which will be a stablecoin as well. Facebook has also marketed its cryptocurrency, Libra, as stablecoin backed by a basket of currencies. Therefore, with retail and social media giants turning towards stablecoins is a tremendous boost for it.
Nevertheless, Venmo is a mobile payment application that is restricted in the US only. Moreover, PayPal, which is a global platform of money transfer, recorded quarterly transfers of $172 billion. The stablecoins will look to achieve this volume soon.
Do you think that stablecoins will surpass the trading volume of PayPal and Western Union in global money transfer? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com