The adjusted transaction volume of stablecoins reached an all-time high of $866.2 billion in August.
Stablecoin adjusted on-chain volume grew by 32.9% in August, from $655.2 billion to an all-time high of $866.2 billion. According to the research, the spike was most likely due to the US Treasury’s approval of Tornado Cash.
Tornado Cash is a cryptocurrency mixing service that allows customers to hide transaction details. The US Treasury sanctioned it in August, adding it and 44 linked Ethereum and USDC wallets to its Specially Designated Nationals (SDN) list.
The Treasury reasoned that being hackers had resulted in money laundering via the mixing service. A top Treasury official stated at the time that this would not be the final action taken against Tornado Cash.
The sanctions may have an influence on stablecoin velocity. This is calculated by dividing the daily transaction volume by the current quantity of stablecoins.
Following the sanctions, stablecoin velocity increased for DAI, USDC, and USDT while it declined for all other stablecoins.