Tether USDT is a stablecoin backed by the US dollar and 1 Tether is equivalent to a dollar. According to Paolo Ardoino, the CTO of Tether, the growth in market cap is very useful for Tether. He referred to it as an incredible milestone. He went further to add that the success of Tether sets a foundation for a Central Bank Digital currency and that important position occupied by Tether in the digital market has them humbled.
The pioneer stablecoin in the world Tether has reached $50 billion in market capitalisation. This was confirmed by Tether Operations ltd in a statement last Friday. The blockchain enabled platform has confirmed that around $50 billion worth of USDT is in circulation. This growth is as high as 25% in a span of 1 month.
Tether holds quite a unique position in the crypto world being the very first stablecoin; it has become the most used dollar peg and remains the number 1 quote in most trading platforms for trading pairs of the two largest cryptocurrencies.
Tether Occupies More than Half the Entire Stablecoin Market Cap
Tether sits on over 65% of the total stablecoin market. Following Tether is USD with a market cap of $11 billion.
The stable increase in Tether has improved the standing of stablecoins in the crypto marketplace. However, this has not stopped suppositions about the coin with its unpredictability striking fright in the minds of investors as there is disinformation about the stablecoin. Tether has however to an extent alleviated the fears of these investors as a Moore Cayman report further strengthened the fact that Tether has the backing of reserves.
A month prior to this assurance report by Moore Cayman, Tether had to settle a fine of over $18 million at the New York Attorney General office. It is also important to note that this assurance report does not mean an audit.
Tether Seems to Have Left Difficulties Behind
Tether has come under cyber-attacks before but in the heat of it all, they stood their ground. These hackers demanded that the network pay a whopping $24 million in BTC to prevent data leaks. Tether refused to pay the ransom even after the deadline given by these nefarious hackers. Crypto currencies are decentralised and this nature makes transactions relatively untraceable.
These all seem to be in the past as Tether has hit this new milestone. This new $50 million in market cap puts Tether on course to surpass the market cap of Ethereum as so many analysts have projected. However, this might not be the case as Ethereum market cap comfortably sits above $280 million.
The market cap of Tether has grown by more than a factor of 10 over past year leading to its current market cap value.
Furthermore, the use of Tether in payments has significantly increased over time and it has continually played an important role in providing liquidity in Defi. The daily trading volume of Tether is now over $140 billion according to Coingecko.
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