The popularity of stablecoins is helping to attract new investors. It is expected that clarity in the regulation of stablecoins may attract new big players such as banks to this crypto sector.
According to data released by RWA.XYZ, the number of addresses holding dollars and dollar-pegged stablecoins has increased by 15% since the beginning of the year to over 93.6 million.
The breakdown showed that holders of Tether (USDT) accounted for just over 80% of the total number of stablecoin addresses, with USDC and BUSD coming in second and third, respectively.
The Federal Reserve's (Fed) interest rate hike in 2022 has increased demand for the US dollar and its equivalents, such as dollar-pegged cryptocurrencies, CoinDesk reported.
At the same time, the number of active stablecoin addresses surpassed 26 million in March alone, a historical record, according to rwa.xyz. And about 77% of those addresses were based on TRON and Binance Smart Chain (BSC).
"If we zoom out and look at transfer volumes, we can see that despite the dominant number of active addresses, TRON and BSC are a minority in $ volumes, indicating their popularity among retail participants," OurNetwork said in a statement.
OurNetwork emphasized that Ethereum and Solana account for the largest share of transfer volume due to their large decentralized financial ecosystem.
The popularity of stablecoins is primarily due to their ability to act as an alternative savings vehicle, which is important in countries with high inflation rates. In addition, stablecoins are actively used to finance cryptocurrency purchases.
Last week, US Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill to regulate stablecoins. However, the bill focuses on stablecoins issued by US organizations, which will have a negative impact on Tether's dominance.
Further reading: Active ETH buying by whales contributes to token price growth