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[Blockchain Today reporter Jeong Seung-won] Circle co-founder and CEO Jeremy Allaire made a bold prediction that the company’s stablecoin USDC will outperform the giant PayPal in terms of transaction value. did.
According to Cointelegraph reports, the comment came in a tweet on the 6th (local time), in which Allaire reported over $500 billion, presenting on-chain transactions to the US Department of Trade over the past year.
He adds that this is already about half of the paypal payments in 2020, suggesting that a’flip’ could happen soon.
Some respondents to the Tweet said that PayPal’s transactions are not necessarily comparable, given that they are used to pay for goods and services, and that USDC is primarily used for transactions and predictions on cryptocurrency exchanges. However, it helped keep the USDC’s growth in sight.
According to Statista, PayPal’s annual transaction volume was $93.6 billion in 2020, an increase of 31.5% from the previous year ($712 billion transactions). In the fourth quarter of 2020, PayPal’s net payments amounted to about $277 billion, up 39% year-on-year.
By comparison, the market’s dominant stablecoin Tether recorded a cumulative trading volume of $600 billion by mid-October 2020 and is expected to exceed $780 billion at the end of the year. After gaining momentum from the surge, the daily trading volume of stablecoins in the fourth quarter of 2020 began to rise.
Mesari reports that the current daily trading volume has been adjusted to USD 2.5 billion in USDC and USD 9.8 billion in USDT. In terms of distribution supply, according to Tether’s Transparency Report, Tether reached an all-time high of $43.3 billion, and USDC’s distribution volume was $11.3 billion, up 1,500% over the same period last year.
According to CoinGecko, Tether is ranked as the 5th cryptocurrency in terms of market capitalization. XRP’s daily growth of 23% and Binance Coin’s all-time highs follow. USDC ranks well below Stellar Lumens at 14th, but it is still the second-largest stablecoin by market capitalization.