BIS Data Shows USDT Grew on Ethereum in 2024 but Smart Contract Use Did Not
(4 days ago) · 1 source · Summarized by CryptoBipto
Data from the Bank for International Settlements indicates that while USDT supply on Ethereum increased through 2024, the share held in smart contracts did not grow proportionally. This suggests that growth in stablecoin supply does not necessarily reflect increased demand for decentralized finance applications.
WHY IT MATTERS
Stablecoins like USDT are cryptocurrencies designed to maintain a steady value, usually pegged to the US dollar. They are widely used in crypto for trading and transferring value. When people see more stablecoins being created on a blockchain like Ethereum, they often assume it means more people are using decentralized finance (DeFi) — think of DeFi as automated banking services built on blockchain, like lending or trading without a traditional bank. However, this BIS report suggests that just because more USDT exists on Ethereum does not mean more of it is actually being used in those DeFi services. It is a bit like seeing more cars on the road but discovering they are mostly parked rather than driving to new destinations. This matters because it helps people understand that headline supply numbers alone do not tell the full story of how a blockchain ecosystem is being used.
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