Arcane Research and Kryptografen are both owned by Arcane Crypto

In last week’s edition of ‘The Weekly Update’ by Arcane Research, it was highlighted that the stablecoin USDT, is now the third largest “cryptocurrency” by market cap, only behind bitcoin and ether.

However, this week, Arcane Research stated that ether is not the most popular cryptocurrency on its own network. This is due to USDT is transferring much more value on the Ethereum Network than ether itself.

After surpassing ETH already in July 2017, USDT is now transferring over $1 billion each day on the Ethereum Network. That is more than twice the value ETH transfers daily.

The gap between the two is widening. While some of this is related to the fluctuations in the ether price, it also shows that Tether’s stablecoin is growing both in market value and adoption.

There could be severe security implications of tokens riding atop of Ethereum becoming way larger than ether itself, as it would change the game theoretic dynamics of a potential attack

Centralized tokens like USDT can mitigate some of that risk, by always having a fallback option, the Tether company intervening, if the Ethereum blockchain was to be attacked.

Daily Adj. Transfer Value (7-day average): ETH vs USDT

For more from ‘The Weekly Update’ click here to the full report here.

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