Paxos is gaining ground in a full pandemic compared to other stable coins on the world market

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Important facts:
  • On May 5, PAX reached the milestone of 24,000 transactions in one day, surpassing USDC.

  • The market capitalization of stablecoins has almost doubled since the general collapse.

In its latest report, cryptocurrency ecosystem analyst Coin Metrics found that Paxos has nearly tripled its market cap in the middle of a pandemic, surpassing other committed cryptocurrencies. In addition, the standard PAX token could gain in importance on the world market as there are indications that it will be used for non-institutional purposes such as transfers.

The market capitalization of Stable coins, since Black Thursday collapse, despite the decline in most unstable assets, has grown to over $ 10 billion, which means accelerated progress. The exact cause of such an increase is still unknown. However, Coin Metrics conducted a study with the idea of ​​figuring out how anchored cryptocurrencies are used in the world that heat maps were used with, with the idea of ​​visualizing daily usage patterns.

The report analyzes the usage patterns of different stable currencies and finds that they may be used for different purposes, even if they are preferred in different parts of the world. For example Tether (USDT), As the most popular stable currency, many more transactions are made today during typical Asian and European business hourscompared to the activity that corresponds to North American trade.

To perform the analysis, Coin Metrics specifically rated the USDT issued on the Ethereum network as an ERC-20 token. In this context, the report states: “USDT-ETH has a clear pattern of intensive use from around 2:00 to 16:00 UTC, which corresponds to the opening hours of the Asian and European stock markets.” He adds that “transfers get darker towards the end of the day: there are very few transfers after 8:00 p.m. when the New York Stock Exchange closes.”

On the contrary, Paxos has been used more widely since last April, taking the transfers into account Stablecoin They have almost tripled since March 12, when the World Health Organization classified the corona virus as a pandemic.

On May 5, PAX reached a new record of 24,000 transactions in one dayand thus surpasses that of USDC and Dai. Data collected by Coin Metrics shows that PAX use is more common throughout the day, suggesting that it may be used less institutionally and globally.

PAX has surpassed the USDC and DAI by tracking more than 24,000 transactions in one day. Source: coin metrics.

Coin Metrics analysts conclude that differences in the regional use of different stable currencies indicate that they are used for different purposes worldwide and that USDT and USDC continue to be the most widely used in Asia. while PAX seems to have a broader level. However, DAI appears to be used primarily by North American traders.

A month ago, CryptoNews reported that the amount of Stable coins or stable coins in circulation with 1: 1 parity to the US dollar, it rose by 53% in less than two months and reached new caps in 2020. At this point, the total capitalization of Tether, trueUSD, USDCoin, paxos, gemini, dai, BitUSD and sUSD was $ 8.373 million, while the volume of the joint transactions exceeded $ 60.563 million within 24 hours.

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