Over $1 billion worth of stablecoin transactions were made on the OP Network.

Santiment analytics show that there is an unusually large amount of USDT and USDC on the OP blockchain. The rise in stablecoin volume and the regional peak in the price of OP happened simultaneously. The cost of OP has dropped by more than 3% over the last nearly 24-hour period. Santiment, a blockchain monitoring company, reports some irregularities in Optimism's network activity (OP). Today, Santiment tweeted a summary of their results.

According to the research, Optimism, among the few blockchains with “growing TVL and blockchain activity,” has recently displayed some unusual behavior. The extraordinarily high transaction volume of stablecoins on the Optimism chain may be the most exciting aspect of network activity, according to the research.

The average USDT and USDC volume of transactions on Optimism is less than $10 million, according to Santiment's study. The discovered aberration, however, revealed that this amount lately increased dramatically to beyond $1 billion.

During the time when the stablecoin volume of transactions skyrocketed, there was a considerable amount of coin velocity in conjunction with the unusual stablecoin trading volume. Regarding the amount of active addresses, there was no irregularity found.

Over $1 Billion in Stablecoin Transactions on the OP Network first published on Coin Edition.

STABLECOIN

Due to the fact that the prices of stablecoins are tied to a reserve asset like the US dollar or gold, they serve as a bridge between the worlds of cryptocurrencies and conventional fiat money. In comparison to something like Bitcoin, this significantly lowers volatility and produces a type of digital currency that is more suited for everything from daily commerce to conducting payments between exchanges.

The idea of combining the permanence of traditional assets with the flexibility of digital assets has proven to be extremely attractive. Stablecoins like USD Coin (USDC), which are some of the most widely used means of storing and exchanging value in the crypto environment, have seen value stream into the billions of dollars.

Stablecoins: Why are they significant？

For instance, the USDC stablecoin is supported by commodities in dollars that have at least equal fair market value to the USDC and are held in segregated accounts with US-licensed banking firms. These accounts are publicly verified and attested to by a reputable independent accounting company.

The Ethereum blockchain is now used by USDC, along with many other stablecoins. Stablecoins acquire some of the most potent characteristics of non-pegged cryptocurrencies while being freed from their instability.

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