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Golden Observation丨Church Apprentices Starve Masters to Death Stablecoins Begin to Threaten Ethereum’s Native Token ETH?



According to the development of stablecoins in the past few years, the market demand has been growing continuously. To many users, stablecoins may seem like a natural progression from traditional finance, but to many developers, the Ethereum blockchain is evolving into the primary environment in which to build stablecoins.

In an interview with the crypto podcast show Bankless, CoinMetrics co-founder Nic Carter (Nic Carter) explained the role of Ethereum in the cryptocurrency ecosystem and the future impact on the development of stablecoins. At the same time, he also said that stablecoins have received more and more market attention in recent years, and this trend has also led to most cryptocurrencies beginning to understand how to compete with legal currencies such as the US dollar.

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2. The second round of the Filecoin Space Race Slingshot competition will start on September 24;

3. Users who have not received the UNI airdrop due to the omission of the agency contract can reapply within 48 hours;

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Nick Carter believes that in terms of the means of wealth transfer that people use, the dollar is currently the first choice when choosing a medium of exchange. People like the stability that the dollar provides, but for better or worse, there is one problem that seems unavoidable. That is: Does the original asset still have a role in people's transfer of wealth?

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1. Deputy Governor of the Central Bank: Support Shanghai in building an international financial center based on RMB financial assets.

2. Coinbase released the open source project Rosetta, Filecoin and other blockchain projects have begun to provide support.

3. Former Gemini executives joined JPMorgan Chase's blockchain-related department.

4. Filecoin will launch a 30-day "virtual hackathon".

5. Whale Alert explained the reason for tweeting on May 20 to remind "suspected Satoshi Nakamoto bitcoin address transfer".

6. Berkshire's official response: Buffett does not have any retirement plans.

7. published an article reviewing the recent EOSIO version update.

8. Chu Hang, founder of IPFS China: FIL is helpful to the real economy.

9. Yi Gang, Governor of the Central Bank: Shanghai can try first in terms of free convertibility of RMB. [2020/6/18]

When comparing with the world's oldest and largest cryptocurrency Bitcoin, Nick Carter said that Bitcoin has always emphasized the primacy of the original blockchain unit, while Ethereum is more open, and many stable currency projects have begun to use Ethereum network.

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Nick Carter added:

"Ethereum has a continuous attitude towards tokenization, and this concept has attracted many stablecoins to migrate to Ethereum, or blockchains like Tron. But the problem is that if those stablecoins grow larger Will anyone still use Ethereum's native token ETH?" 

As shown in the figure above, compared with the development of Ethereum’s native token ETH, the growth rate of stablecoins is obvious Faster, most notably with the dollar-pegged stablecoin Tether, which currently controls approximately 87% of the stablecoin market. In the second week of February this year, Tether’s market capitalization was only $4.66 billion, accounting for 82% of the market share. However, since the global cryptocurrency market crashed in March this year, Tether’s stablecoins have begun to issue crazily. In April alone, Tether Treasury issued as many as 1.6 billion USDT. Since the beginning of April, the market value of global stablecoins has increased by about Most of the growth came from Tether (USDT_ETH) issued on Ethereum. On April 1st, the market value of Tether was about 4.43 billion U.S. dollars, but it surged to 5.14 billion U.S. dollars on April 19th. Another 480 million USDTs were issued in a week, and now Tether’s asset value has reached 9.88 billion U.S. dollars, and it has replaced Ripple to become the third largest cryptocurrency in the world by market value. What is even more "scary" is that if this development rate is followed, Tether's next step is very likely to threaten the status of Ethereum, the second largest cryptocurrency by market value.

On the other hand, stablecoins such as Tether have also played a role in driving demand for Ethereum gas, which may force Ether to find other new correlations as a means of paying transaction fees on the Ethereum blockchain.

Not only that, but the global stablecoin market has basically exploded in 2020, with the total stablecoin supply now worth over the $11 billion mark, doubling in value since February. From the perspective of market share, TrueUSD (TUSD), Paxos (PAX), USD Coin (USDC) and DAI have all achieved good results. Among them, Circle’s USDC now controls the second largest share of the stablecoin market. With a total value of $732 million, the market share climbed to 7%.

However, some people believe that the great strides in the development of stablecoins are beneficial to the cryptocurrency industry, because it represents that stablecoins are gradually transforming into true "trusted cryptocurrencies". For example, Adam Back, the co-founder of Blockstream, insisted that the encryption industry does not need to worry about the growth of the stable currency market value, because Tether plays the role of "fuel" in the cryptocurrency market, and the total supply may become more in the future. , so the market needs to get used to this "new normal".

Part of this article is compiled from ambcrypto


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