This Unexpected Factor Presents a Long-Term Risk to Ethereum’s Value: Analyst

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Over the past few weeks, Ethereum has been benefiting from a surprising trend: stablecoins, which have recently passed $9 billion in aggregate value. Although some of these stablecoins are based on Binance Chain, Bitcoin, or other networks, Ethereum has been the primary home for stablecoins, namely Tether’s USDT. In fact, data suggests that due to the concentration of stablecoin use on the network, the total value of coins transacted on Ethereum has begun to rival that of Bitcoin, despite the former having around 15% of the value of the latter. As Ryan Sean Adams, founder of Mythos Capital explained: “In Feb 2016 the reserve asset of Ethereum traded at $2. If I told you then that 4 yrs later this network would host over $9b in stablecoins & that’s just one of its promising use cases you have been blown away. You would have backed up the truck. That’s how…

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