The use of stablecoins is on a steady rise, and Tether seems to be leading the way.
This is what emerges from the report on the quarter of 2022 of Coinspaid, a Crypto payments processor with a multi-valued Wallet.
In fact, the report reveals that the most popular cryptocurrencies for payments are precisely stablecoins.
Tether (USDT) leads the market
In fact, stablecoins are the equivalent of Fiat currencies in the crypto field, and given that Fiat currencies are basically transactional currencies (i.e. means of payment), it should not be surprising that in the crypto field, it is above all the stablecoins are used for this purpose.
On the other hand, in the Crypto sector Fiat currencies are not very used, except to buy cryptocurrencies or monetize any earnings, because they are not simple and fast to move.
For example, it is simply impossible to move Fiat currency from one Exchange to another, in addition to the fact that Crypto transactions are uncensored while those in Fiat are not.
Those who trade with cryptocurrencies prefer stablecoins to Fiat currencies because they practically eliminate all the classic obstacles and classic limitations to which money transfers in Fiat currency are still subject.
Not to mention the costs of international transactions.
Tether – the champion among stablecoins
The Coinspaid report states that on their platform USDT transactions in 2022 even increased by 488%, with a general increase in stablecoin transactions from 2% in 2021 to 9%.
The four main stablecoins, now that Ust has practically disappeared, are all anchored to the US dollar and therefore used all over the world.
Outside the USA, Fiat dollars are much less used than local Fiat currencies, while as regards the stablecoins those in dollars are widely used by everyone all over the world in the Crypto sector.
However, the fact that the use of USDT has been growing in the year in which many fears have spread over his estate after the implosion of Ust has been very curious.
It should be remembered that the stablecoin anchored to the earth/moon dollar was an algorithmic coin, or not collateralized in dollars or assets similar to the dollar.
In 2022 no important stablecoin was entirely collateralized in dollars or equivalent assets, and it is perhaps for this reason that the fears widespread in May have since disappeared.
Indeed, with the problems of Busc the greatest advantage was Tether, also because his main competitor, USD Coin (USDC), suffered from fears similar to those arising from Busc.
So, paradoxically, in the worst year for Tether of the last cycle of the Crypto USDT markets, it has strengthened, especially against the major competitors.
One of these, Ust, has even disappeared, while two, Busc and Usdc, have had some problems, while always keeping the peg with the dollar.
Exit in Fiat, or stablecoins
It is possible that the main reason why transactions in stablecoin have increased so much in 2022 is trivially the race for the sale of cryptocurrencies after the 2021 boom.
In fact, many have taken advantage of being in profit, after buying in previous years at much lower prices, but not everyone sold recessing Fiat currency.
In fact, on the Crypto-to-Crypto exchanges, such as those from cryptocurrencies to stablecoins, in different countries there are no taxes on any capital gains, therefore they are often preferred to Fiat currencies to avoid the taxation of capital gains.
At this point, it is understandable why payments in Stablecoin have increased, given that once collected they do not have many concrete uses, except as a means of payment to buy other cryptocurrencies, or services, or material goods.
In addition, in 2022 there was also a sort of “escape” from cryptocurrencies, due to the collapse of their market value.
For example, Coinspaid reveals that during the collapse of FTX, in November and December 2022, the number of transactions increased by 40%, compared to the same period of 2021, and the volume by 32%.
In autumn 2022 the number of Bitcoin transactions increased by 20%, 180% in Ethereum and 13% in Litecoin.
It should also be noted that Bitcoin’s dominance regarding transactions on Coinspaid dropped from 78% in 2021 to 68% in 2022.
In other words, 2022 was a year of change not only for the Crypto markets but also for the concrete use of stablecoins.
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