Adjusted stablecoin trading volume soared in August, reaching an all-time high of $866.2 billion.
According to The Block Research, the adjusted volume of on-chain stablecoins increased by 32.9% from $655.2 billion to a record high of $866.2 billion in August. The increase was likely attributable to the US Treasury’s approval of Tornado Cash, according to the report.
Tornado Cash is a cryptocurrency mixing service that allows users to hide their transaction details. In August, he was sanctioned by the US Treasury, with the regulator adding him and 44 associated Ethereum and USDC wallets to its list of specially designated nationals (SDN).
Treasury’s reasoning was that being pirates had laundered funds through the mixing service. At the time, a senior Treasury official said this would not be the last action against Tornado Cash.
An effect of sanctions can be seen in the speed of stablecoins. It is a measure of daily trading volume divided by the current supply of stablecoins.
Following the sanctions, the speed of stablecoins increased for DAI, USDC and USDT – all other stablecoins decreased. Block Research again attributed this primarily to Tornado Cash sanctions.
© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.
About the Author
Adam Morgan is The Block’s markets reporter. He’s been based in London for a year, initially freelancing and working for a start-up there before starting a fellowship at Business Insider. He tweets @AdamMcMarkets