A research done by CoinMetrics discovered that a few accounts control up to 80% of the top five stablecoin. It was also able to establish that 20% of all the stablecoin transfers are valued to less than $100. That means that stablecoins are facing a high rate of adoption as a means of payment.
From the report it did, it was clear that almost half of the transaction done using the Paxos Standard Token (PAX) has a direct link to Ponzi schemes, MLM, or multi-level marketing.
Stablecoin link to wealth centralization
From the report, the top five stablecoins are Gemini Dollar (GUSD), Tether (USDT), Binance USD(BUSD), USDK, and Huobi Dollar (HUSD). Less than six accounts of each show extreme wealth centralization as they represent over 80% of each token’s capitalization.
USDT, which is based on Ethereum, is the most popular stablecoin in the market with almost 1600 accounts and representing 80% of the wealth. There are also other stable coins such as the USD Coin (USDC) and TrueUSD (TUSD) that are small-scale with about 200 accounts each.
From the transfers made using stablecoins, USDC is following closely to the second position when it comes to the most distributed stablecoin. It’s 20% of the wallet drives 80% of transfers.
Paxos driving Ponzi schemes
There is so much growth in the Paxos network as 50% of the wallets represent 80% of the total token’s capitalization. Even though it is doing well, it has been linked to driving Ponzi’s. The two most active accounts of the network have a direct link to MMM BSC Ponzi. The scheme has experienced massive growth in the last year and so far, it accounts for up to 40% of the total network activity.
In addition to that, some Tron-based USDT accounts have also been associated with fishy deals as they have “dividend” payouts on certain days, and that represents 90% of all the network activity.
Less is more
CoinMetrics examined up to 10 stable tokens and from that, it discovered that less than 20% of transfers are valued at less than $100.
From the analysis, all stablecoins except HUSD and BUSD have less than 4% of transfers valued over $100,000. When it comes to transfers over $100,000, they consist of 35% of HUSD transactions and about 17% of BUSD activities.