The number of stablecoin millionaires’ appears to have been continuously increasing throughout the year.
According to Coin Metrics statistics, the number of stablecoin wallet addresses with account balances over $1 million USD recently topped 12 million, up from 4 million a year ago. Tether ERC-20 (USDT), Tether TRC-20, Binance USD, DAI, GUSD, HUSD, PAX, and USD Coin are among the stablecoins included in the study (USDC).
Tether TRC-20 (about 8 million addresses) accounted for the largest majority of addresses with more above $1 million, followed by Tether ERC-20 (roughly 3.4 million), and USDC (approximately 3.4 million) (approximately 1 million). With the exception of a significant but temporary drop in May of last year, such addresses have been steadily increasing over the last 12 months.
The figure is still insignificant when compared to the number of huge cryptocurrency wallets with more than $1 million in them. According to Coin Metrics, there are approximately 102 million wallet addresses that satisfy this requirement, all of which are denominated in Bitcoin (BTC), Ethereum (ETH), or XRP Ledger (XRP). The number of “millionaire” BTC wallet addresses, for example, has stayed mostly unchanged since May 2021. ETH and XRP, on the other hand, are not in the same boat.
The data has limitations, such as the fact that it is based on all wallet addresses rather than unique ones, implying that the number of people with such wallet balances is likely far smaller than 12 million. In recent years, the use of stablecoins has increased considerably. They can now be used, among other things, for interactions with various types of decentralised finance protocols, such as Terra’s Anchor. They started out as a way for investors to cash out during volatile periods, but they can now be used for interactions with various types of decentralised finance protocols, such as Terra’s Anchor.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.