Adjusted transaction volume of stablecoins soared almost 33% in August
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Adjusted transaction volume for stablecoins skyrocketed in August, reaching an all-time high of $866.2 billion.
According to The Block Research, the stablecoin’s chain-adjusted volume grew 32.9% from $655.2 billion to an all-time high of $866.2 billion in August. According to the report, the increase was likely due to the sanction imposed by the US Treasury Department on Tornado Cash.
Tornado Cash is a cryptocurrency mixing service that allows users to obfuscate the details of their transactions. In August, it was approved by the US Treasury Department, and the regulator added it and 44 related Ethereum and USDC wallets to its list of Specially Designated Nationals (SDN).
The Ministry of Finance reasoned that the hackers had laundered funds through a mixing service. At the time, a senior Treasury official said it would not be the final action against Tornado Cash.
The impact of sanctions can be seen in the stable coin speed. This is a measure of daily transaction volume divided by the current number of stablecoins.
After the sanctions, stablecoins increased in velocity for DAI, USDC and USDT – all other stablecoins decreased. Block Research again attributed this to the majority of Tornado Cash sanctions.
© 2022 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.
About the author
Adam Morgan is the market reporter for The Block. He has been working in London for the past year, initially as a freelancer and working at a start-up there before starting a fellowship at Business Insider. He tweeted at @ AdamMcMarkets