Ethereum is the world’s dominant network for stablecoins and it is still growing. However, with more transactional value taken up by them than ETH itself, is this such a good thing?
Last week research firm Messari observed that the amount of value moved with stablecoins now exceeds the amount of value moved using ETH on the Ethereum network.
There are primarily two types of stablecoin, bank stablecoins such as Tether, Paxos, TUSD and USDC which are dollar pegged, and protocol stablecoins such as Dai which are crypto collateral backed. Combined they represent $3.2 billion in assets on Ethereum – a figure that is increasing for DeFi as total value approaches a billion USD.
Parasitic Stablecoins on Ethereum?
Mythos Capital founder Ryan Sean Adams has been delving into the stablecoin situation concluding that they are not parasitic to…
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