Bitcoin was supposed to be the cryptocurrency for the masses. Instead, a different type of digital token has emerged as the leading force of the blockchain world.
The aggregate daily dollar value of transactions made in fixedcoins – essentially digital assets like Tether and USD coins pegged to the world currency as the blue-green – surpassed the value of Bitcoin’s for the first time on June 29, according to researcher Coin Metrics. Tether is poised to surpass Bitcoin on its own, according to researcher Messari.
“At this pace it looks like Tether alone will hold Bitcoin within a month or two,” said Coin Metrics co-founder Nic Carter, who used his Messari data.
Tether, the most prominent stablecoin, has also been the most controversial since its first appearance in 2015. The entities controlling the coin are currently involved in a dispute with the New York attorney general over alleged misuse of client funds, claims the company has denied.
Tether and other stacks are often used by people operating outside banking and government controls such as for settlement by Asian export and import businesses, and in various lending and lending apps that have grown.
“Most consumers don’t want to negotiate in volatile cryptocurrencies like Bitcoin or Ether, preferring to hold them in place, so fixedcoins are a great complement,” said Ryan Watkins, research analyst at Messari.
The daily amount does not include transactions that take place in crypto exchanges, where Tether often acts as a conduit to trade between different coins.
“This does not mean that ‘native’ cryptocurrencies do not have a role to play, but it does mean that they have surrendered a fraction of their touch utility to the more convenient fixedcoins,” said Carter.
Read More: Tether, Not Bitcoin, Probably World’s Most Used Cryptocurrency