The research division of the Binance exchange has prepared a report entitled “The Evolution of Stablecoins”. The document is devoted to the development and prospects of this tool.
Thus, the popularity of stablecoins in cryptocurrency trading continues to grow steadily. If a year ago they accounted for 35.78% of the total trading volume of the exchange, now it is more than 60%.
Accordingly, the pairs quoted for Bitcoin and Ethereum lost some of the volumes. This, however, did not happen with BNB pairs, whose share also increased over the period, according to Binance. Partly observable dynamics can be explained by the launch of new trading pairs based on stablecoins.
In April 2019, the BTC / USDT pair turned out to be the most liquid among all pairs with stablecoins, and the average frequency of transactions in it was less than 0.3 seconds. In other bitcoin / stablecoin pairs, with the exception of USDS, this value is 5-8 seconds.
As noted by Binance, the Tether rate was fairly stable in the first months of this year, but recent events led to its short-term collapse of up to $ 0.95, from which the median price soon returned to the $ 0.98-0.99 area. Analysts suggest that in the coming months, fluctuations in the USDT rate may be significant.
As of April 30, much of the USDT was still based on the OMNI protocol. Binance expects that the situation will change in the near future due to the addition of alternative USDT variations on the Ethereum and TRON blockchains by a large number of exchanges.
In addition, analysts reviewed the prospects for the alleged initiatives of Facebook and Samsung to launch their own stablecoin.
“Facebook has a whole ecosystem that includes Facebook, Messenger, Whatsapp and Instagram products that can integrate future digital currency. With a user base of billions of people, Facebook can launch solutions ranging from international payments to paying for premium content (for example, games) for individual users and services. Although it is difficult to predict what this project will take, it is likely that a private or partially private blockchain will be involved with a certain level of control from Facebook itself, ”writes Binance Research.
Similarly, Samsung Coin, although it remains a completely vague project, is likely to be a stablecoin, since in this way it will be easier to integrate it into the entire line of products and devices of the South Korean corporation.
Developers of existing stablecoin take various measures to gain a foothold in the market. Tether increases its presence due to the emission in the Ethereum and TRON blockchains; TrustToken plans to launch several new stablecoins linked to fiat currencies such as AUD, GBP, HKD and EUR; Pexos collaborates with Ontology, aiming to launch PAX on new blockchains.
Analysts expect that the competition in the field of stablecoins will lead to many long-term benefits for users, such as creating new payment channels, improving pricing on exchanges without the support of the dollar, as well as the emergence of foreign exchange exchanges on the blockchain.