Blockchain-based decentralized ecosystem Ethereum is no longer a popular crypto asset-building platform.
Ether Ethereum-based native cryptocurrency isn’t dominating the Ethereum blockchain anymore as stablecoins replaced it.
Though Ethereum has its cryptocurrency, there are thousands of tokens that run on the platform. Some are stablecoins, i.e., assets that are tied to the value of another currency, gold, or the US dollar.
Due to the rise of Tether, the US dollar-based stablecoin, the value of Ethereum blockchain has escalated using stablecoins than its native cryptocurrency.
As per the tweet of Ryan Watkins, a Research Analyst at Messari, the economy of Ethereum is now dominated by stable value transfer. The flip happened somewhere between mid-2019, and the gap has widened ever since.
Tether is also on Bitcoin’s Omni Layer, but the eponymous company behind the token began migrating tokens to Ethereum in April 2019. After a few months, the value of Tether on Bitcoins started declining rapidly. Recently, Tether has started issuing coins on the Tron blockchain, with the USDT influx since November 2019.
In one of the recent tweets, the CoinMetrics data analyst said the Value of Tether transfers on Ethereum were two or three times that of the ether transfers. So the ratio never grew above 0.4 on Bitcoin.
The initial activity of stable coin on Ethereum started clogging the network. But miners adapted by slowly increasing the block sizes, and the network has managed to cope.