Stablecoin Surge in 2022: Brevan Howard Digital Highlights Tron’s Dominance and Raises Knowledge Authenticity Questions

In a current evaluation titled “The Relentless Rise of Stablecoins,” Brevan Howard Digital delved deep into the world of stablecoins, revealing some astonishing figures.

The report highlighted that in 2022, on-chain stablecoin transactions reached a staggering $11 trillion, practically matching Visa’s transaction quantity of $11.6 trillion. This comparability, though not totally analogous, underscores the rising significance of stablecoins within the monetary ecosystem.

The analysis, which was based mostly on blockchain transaction knowledge, discovered that roughly 5 million stablecoin addresses have been lively weekly. Apparently, three-quarters of those addresses transacted lower than $1,000 per week.

This means that almost all of stablecoin customers are doubtless small or retail customers. Whereas many of those transactions are monetary in nature, a good portion additionally represents real-world makes use of similar to peer-to-peer funds.

Nevertheless, the report additionally highlighted a possible concern relating to the authenticity of the information, particularly given the dominant function of the Tron blockchain in stablecoin transactions.

The information revealed that Tron, together with the Binance Sensible Chain (BSC), accounted for a whopping 75% of all stablecoin transactions and 41% of the full quantity. Most chains, excluding Tron and BSC, predominantly use USDC. In distinction, Tron and BSC are extra inclined in direction of Tether (USDT). One of many causes behind this could possibly be the affiliation of USDC with Coinbase, whereas Tron and BSC have affiliations with different exchanges.

The report additional emphasised the dominance of Tether on the Tron blockchain, with its issuance nearing $43 billion, which is 52% of all USDT stablecoins. A speculative clarification for this huge stability and the variety of wallets on Tron is its important consumer base in China, a declare supported by Tron’s founder, Justin Solar.

Nevertheless, the report additionally touched upon some controversies surrounding Solar, together with allegations of manipulative wash buying and selling of TRX to artificially inflate its worth.

Such buying and selling usually includes using a stablecoin, which may doubtlessly inflate stablecoin transaction volumes.