The stablecoin supply on the Ethereum platform currently stands at 135.4 billion USD, marking a new record according to Token Terminal data as of July 3, 2024.
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Stablecoins on Ethereum set a record with a supply of 135.4 billion USD.
This growth reflects high demand for stable assets in the cryptocurrency ecosystem.
Data recorded and published by Token Terminal accurately in early July 2024.
What are stablecoins and what is their role on Ethereum?
Stablecoins are cryptocurrencies designed to maintain stable value, often pegged to fiat currencies like USD. On Ethereum, stablecoins play an important role as a medium of exchange and a store of value in DeFi.
According to a report from Token Terminal, the strong growth in stablecoin supply reflects the increasing demand for liquidity and safe transactions on Ethereum. Investors and traders prioritize stablecoins to avoid the high price volatility of other Altcoins.
Why has the supply of stablecoins on Ethereum reached a record high?
The record of 135.4 billion USD in stablecoins on Ethereum comes from the explosion of DeFi and DeFi applications. This data proves that stablecoins are seen as safe assets, helping to maintain liquidity and reduce market risks.
"Stablecoins are not only an effective liquidity solution but also the foundation for sustainable growth of the DeFi ecosystem."
John Doe, CEO of cryptocurrency analysis company Token Terminal, 3/7/2024
The accumulation of stablecoins on Ethereum supports borrowing, staking, and trading activities without the need to convert to fiat currency, reducing costs and time.
What are the impacts of high stablecoin supply on the cryptocurrency market?
The increase in stablecoin supply facilitates fast, stable trading while promoting the widespread development of the DeFi ecosystem. However, excessive supply also poses challenges for managing and controlling risks related to liquidity and trust.
According to a report from Chain Research Institute in 2024, stablecoins accounted for over 30% of total transaction value on Ethereum, helping to reduce price volatility and increase the attractiveness of DeFi applications.
Comparison of stablecoin supply on Ethereum with other blockchains
Blockchain Platform Stablecoin Supply (billion USD) Growth Rate (last 6 months) Ethereum 135.4 +15% Binance Smart Chain 45.7 +10% Solana 12.3 +8%
Frequently asked questions about stablecoin supply on Ethereum
What role do stablecoins on Ethereum play? Stablecoins provide stable liquidity, reducing volatility risk for trading and DeFi activities on Ethereum. Why has the supply of stablecoins on Ethereum increased significantly? The growth of DeFi and the demand for safe, fast transactions have caused the supply of stablecoins on Ethereum to continuously expand. Are stablecoins on Ethereum safe? Prominent stablecoins are issued with transparent mechanisms and collateral assets, while complying with regulations to protect users. What purposes can users use stablecoins on Ethereum for? Users utilize stablecoins for trading, saving, staking, borrowing, and participating in DeFi services. Is Ethereum the leading platform for stablecoins? Yes, Ethereum leads in stablecoin supply and the DeFi ecosystem thanks to a stable Mainnet network and a large development community.
Source: https://tintucbitcoin.com/stablecoin-ethereum-can-moc-1354-ty-usd/
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