In the midst of the boom of the stablecoins, Tether doubled their capitalization from January 2020.
Cardano and Ether led between the altcoins that are appreciated more than bitcoin in the quarter.
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While the media coverage continued to focus on Bitcoin during the second quarter of 2020, the stablecoins had a considerable impetus in this period, says the report published quarterly by eToro this 22 of July.
From January 2020, the market capitalization of the stablecoins doubled, while the incoming flow of currency, fiat towards the stablecoins exceeded 5,000 million dollars in six months, the report points out.
The executive director of eToro in the united States, Guy Hirsch, says that a manager of a company in Pakistan or Iran you can use a currency anchored to the u.s. dollar, to pay their suppliers and even their employees, without worrying about inflation without control of the money fiat. “We hope that this will increase in the third quarter and beyond, as a catalyst for a global economy free and fair, and resistant to censorship and corruption.”
The explosive growth of the stablecoins
In 2018, in the midst of the euphoria of the initial offerings of currency, or ICO, the stablecoins came to USD 1,400 billion in market capitalization. The quarterly report highlights that two and a half years later, the stablecoins have grown nearly 10 times and come close to us $ 11,000 million of capitalization.
Image 1. Growth of stablecoins. In two and a half years, the capitalization of the stablecoins has almost been multiplied by 10. Source: eToro – The TIE.
As reported Breaking News, Tether is approaching the 10,000 millions of dollars in capitalization, which makes it the third criptomoneda by market capitalization. In comparison, Tether was number 28 in terms of market capitalization in January of 2018. The report also notes that Tether exceeds the value of assets like XRP, Bitcoin, Cash, or Litecoin, the report notes.
In countries such as Venezuela (where inflation exceeds 15.000%), and Iran (with inflation above the 34%) is seeing an adoption of significant digital assets including Tether, which has doubled its total value to USD 10,000 million, according to our research.
The State of Digital Assets. Q2 2020. eToro – The TIE.
Among other findings, the report eToro highlights that the sentiment of investors around Bitcoin and the gold became more correlated. “In June the futures price of Bitcoin and gold moved in the same direction 50% of the time, while the price of bitcoin and the S&P 500 index moved in the same direction 62% of the time,” says the report.
Many of the altcoins, says eToro on the other hand, continued to show a better performance than bitcoin in the second quarter. Specifically, ADA, of Cardano, and Ether, of Ethereum, showed yields of 175% and 70%, respectively.
Finance decentralized or DeFi have become an important part of the narrative in the field of cryptocurrencies, the report says, noting that DeFi had more mentions in the media that the halving of Bitcoin, during the second quarter.
However, it is stressed that the particulars of DeFi were circumscribed to the specialized press and that “despite the hype (hype), the market is still extremely small, a few thousand users”.
Specifically with respect to users of eToro, Tezos was the only criptomoneda which recorded a growth in their investments in that platform. The rest of the cryptocurrencies registered a decline in investment, while the users invested more in shares during the quarter.