Stablecoins on Ethereum Processed More Transactions Than Venmo

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Crypto analysis agency TradeBlock found that a valuable metric in measuring the level of stablecoin adoption is looking at the volume of on-chain transactions. In a new report, they have found that the aggregate total on-chain transfer volume across Ethereum-based stablecoins is greater than that of popular payment infrastructure Venmo, while also being cheaper.

Stablecoins are asset-backed cryptocurrencies which do not fluctuate as much as other cryptocurrencies in terms of value. They are based on blockchain platforms, however. Stablecoins have become increasingly popular with firms such as Circle dominating the scene. Importantly, in June, Facebook announced its plans to release its own stablecoin, Libra, which will be backed by a basket of fiat currencies.

In its analysis, TradeBlock found that transfer volumes have risen significantly across stablecoin platforms.

Another significant finding is that the processing and transaction fees taken by the Venmo platform are majorly higher than those across the five largest ERC-20 tokens. According to the report, customers spent a total of $827,000 in network fees for Ethereum, while Venmo has charged $150 million over the same period.

Tether is the biggest stablecoin in terms of market capitalisation and has mutiple iterations across various blockchains such as Ethereum, Tron and even Bitcoin. Its ERC-20 standard has seen a surge in transactional activity, reaching the top spot among all Ethereum stablecoins.

Ethereum enthusiasts on Twitter were extremely happy with these findings, considering them proof that blockchain technology has the potential to replace traditional payment mechanisms.



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