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Long touted as an alternative to fiat currencies without the volatility of digital assets like Bitcoin, stablecoins and related companies mushroomed in late-2018; with a lot of projects even getting venture funded.
However, stablecoin markets may not be limited to trading and remain highly-centralized, onchain research firm CoinMetrics noted earlier this week.
USDT is well distributed
CoinMetrics analyzed the supply and activity distribution of the six most-popular stablecoins, noting most are issued on ERC20, have the same price (the USD), and end up serving the same end users.
The ERC-20 variant of Tether shines as being particularly well distributed amongst its holders. Meanwhile, 6 accounts or less own 80+% of the supply for Gemini Dollar, Binance USD, Tether (Tron), USDK, and HUSD.
— CoinMetrics.io (@coinmetrics) June 9, 2020
The firm said Tether’s ERC20 token, different than its Tron and Omni generated tokens, stood as “particularly well distributed” amongst its holders. This, despite the controversies around Tether’s ownership and true USD reserves.
However, only six accounts were found to own over 80 percent of Binance USD, the Gemini Dollar, Tether (Tron), HUSD, and USDK. The accounts were mainly centered on their respective exchanges, with little use outside of those bourses.