Stablecoins Adjusted Transaction Volume Grows Nearly 33% in August

Stablecoins’ adjusted transaction volume rose by 32.9% in August. Volumes increased sharply from $655.2 billion to a brand-new record-breaking $866.2 billion. The cause of this increase is attributed to the US Treasury sanctions against Tornado Cash.

The adjusted on-chain volume of stablecoins surged by 32.9%, from $655.2 billion to an all-time high of $866.2 billion in August, according to The Block Research. According to the research, the spike was most likely caused by the U.S. Treasury’s ban on Tornado Cash.

Tornado Cash is a cryptocurrency mixing service that allows users to obscure the details of their transactions. In August it was sanctioned by the U.S. Treasury, with the regulator adding it and 44 associated Ethereum and USDC wallets to its Specially Designated Nationals (SDN) list.

According to the Treasury, hackers had been using the mixing service to launder money. Senior Treasury officials had indicated at the time that it wouldn’t be the final action taken against Tornado Cash.

The velocity of stablecoins may be impacted by the sanctions. This is calculated by dividing the daily transaction volume by the available supply of stablecoins.

Following the sanctions, the velocity of DAI, USDC, and USDT stablecoins increased while that of all other stablecoins declined. Once more, The Block Research ascribed much of this to the restrictions against Tornado Cash.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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