Ethereum Is No Longer a Monopoly Platform for Stablecoins

Published on by Cointele | Published on

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The overwhelming majority of these stablecoins were running on Ethereum before 2018, without any indication suggesting that this might change.

The script has flipped, according to Blockchain.com's "2019 State of Stablecoins" report: Only 50% of all stablecoins are now built on Ethereum, and the latest Blockdata report also highlights this decrease.

Why Ethereum?Despite the number of blockchain 3.0 projects hitting the market, Ethereum continues to take up a significant portion of the stablecoin market.

Most current assets are based on Ethereum, and the emerging DeFi industry has a strong need for stablecoins designed to work within the same chain.

Each one of these stablecoins are compelling proof of the stablecoin concept, and they all happen to be built on the Ethereum blockchain.

New stablecoin modelsThere are 33 Ethereum-based stablecoins out there, as well as eight stablecoins based on Bitshares and six on Stellar.

An Ethereum-based stablecoin framework comes with limited transaction bandwidth: Ethereum can handle around 25 transactions per second at maximum, and users pay higher fees to see their transactions processed with urgency.

The crypto market is recognizing the value that stablecoins have, as the global stablecoin trading volume grew from $12.5 billion in 2017 to $82 billion in 2018.

As the stablecoin market begins to see some maturation within a cryptocurrency industry just 10 years old or so, it's clear that there are options beyond Ethereum.

While the stablecoin market charges forward at large, Ethereum is standing still by comparison.

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