For the crypto markets, 2018 has arguably been the year of stablecoins with different versions of fiat pegged coins being released almost simultaneously in September.
Circle also launched USDC on September 26, while in the same month CarbonUSD was launched. The London Block Exchange lastly released a pound sterling backed stablecoin with the ticker LBXPegon September 29.
With these stablecoins, all existing alongside controversial Tether (USDT), many would have wanted to know how they have fared so far.
Well, a new report published by research firm Diar, confirmed that they had found massive growth in the crypto markets in their early days, especially in November.
Rosy November For Stablecoins
The crypto markets may have plunged in November, but according to the report, stablecoins were not involved and are ultimately gaining traction for on-chain transactions.
A 1032% increase in the stablecoin usage was posted in November while transactions involving the fiat-pegged cryptocurrencies kissed the $2.3 billion mark. The Paxos Standard which now has a market cap of $93 million was one of the most successful stablecoins with $1.8 billion posted on Ethereum transactions.
So far, the top newly launched stablecoins - USDC, TUSD, PAX, and GUSD- have also reached a $5 billion transaction milestone in less than three months. At press time, the top four stablecoins were among the top 50 cryptocurrencies by market cap according to CMC data.
One of the reasons behind the growth of the stablecoins pertains to what we reported in November that Circle, the issuer of the USDC employed a banking firm to confirm its reserves.
It was a lack of this practice that made Tether (USDT) controversial and most of the other stablecoin providers have learned their lessons.
Meanwhile, Tether (USDT) in November also crossed the $1.00 per coin for the first time following a turbulent period.
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