- Venmo transactional volume surpassed by ERC-20 stablecoins
- Stablecoins are increasing the volume they handle on their networks
After several weeks in which Bitcoin has been operating with large gains in the market, stablecoins started gaining traction and increased trading volume. According to data provided by TradeBlock, ERC-20 stablecoins surpassed Venmo in terms of transaction volume. Venmo is a recognized mobile payment services company that operates in different jurisdictions.
Stablecoins Process More Transactions than Venmo
As reported by TradeBlock, a recognized provider of institutional trading tools related to the cryptocurrency market, ERC-20 stablecoins registered a larger trading volume than Venmo, a recognized and already established company in the payments industry.
The graph provided by TradeBlock shows that in previous quarters, the transactional volume processed by ERC-20 stablecoins was much lower than Venmo’s transactional volume. For example, during the first, second and third quarter of 2018, Venmo more than quintupled the volume of transactions processed by these stablecoins.
During the last quarter of 2018, there was a change in the tendency. Stablecoins gathered strength despite the fact that Venmo volume was also increasing.
The first quarter of 2019 the tendency continued and ERC-20 stablecoin transactional volume was getting close to half of Venmo’s volume. This second quarter, the results seem much more positive for stablecoins. In this second quarter, stablecoins registered a trading volume of around $27.5 billion, while Venmo transaction volume is around $23 billion.
In 2019, #crypto stablecoin on-chain transaction volumes have risen considerably. Over the most recent quarter, the 5 largest #Ethereum based stablecoins have seen, in aggregate, greater transaction volumes than Venmo. pic.twitter.com/C6UbNlYI1e
— TradeBlock (@TradeBlock) July 10, 2019
Although the transactional volume was very high in digital currencies such as the USD Coin (USDC) or Paxos Standard (PAX), Tether registered a massive increase last quarter. Tether is one of the most controversial stablecoins in the crypto market. The digital currency has been accused of being involved in fraudulent trading activities and manipulating Bitcoin’s price. Tether has currently a market capitalization of $3.88 billion and it is getting closer to $4 billion.
Other stablecoins such as USDC or TrueUSD have also been growing over time and gathering a larger portion of the cryptocurrency market.