The daily average volume transferred in Tether (USDT) exceeded not only that of Bitcoin, but also that of PayPal.
This is revealed by CoinMetrics, according to which, on August 20th, the 7-day average value transferred daily exceeded $3.55 billion, compared to $2.94 billion for Bitcoin.
Therefore USDT is not only more traded than BTC, it also generates more transactions and moves more volume.
According to CoinMetrics, stablecoins are also increasingly being used in popular DeFi applications such as Uniswap and Curve, which probably played a role in this recent increase in Tether’s trading volume.
As can be seen from the chart, until March 2020 the average daily USDT trading volume had always been significantly lower than BTC’s, except on rare occasions, but as of July Tether first caught up with and then outperformed Bitcoin.
But this figure is impressive, especially when compared to PayPal.
In fact, PayPal’s official report on the second quarter of 2020 states that the Total Payment Volume (TPV) for the quarter was $222 billion, or a daily average of $2.94 billion, as revealed by economist John Paul Koning on Twitter.
Therefore the daily volume reached on August 20th by USDT is also higher than the average recorded on PayPal from April to June.
Tether, why the volumes transferred exceed PayPal
This comparison is even more sensational in the light of the fact that on PayPal fiat money is exchanged for everyday use, while USDT is a crypto token still used by a small niche of people.
However, it should also be said that most of the USDT volumes are generated by exchanges, whereas the same cannot be said for PayPal, which is used much more for online purchases on e-commerce websites, for instance.
So these are two different uses of two similar but different forms of money, albeit with the same value.
Furthermore, USDT has the double advantage that it can also be used anonymously and has no imposed restrictions, whereas PayPal is accepted almost everywhere and allows a lower level of risk.
However, given that until July 2020, the average daily volumes of USDT had never exceeded $2 billion, and that the billion-dollar daily threshold was only exceeded in March this year, along with a single peak at the end of 2019, it is reasonable to expect further growth in these volumes, perhaps even well beyond the current levels of PayPal.