Tether is Now the Third Biggest Cryptocurrency after Bitcoin and Ethereum in Market Cap
Tether has left behind XRP in market capitalization and has taken the position of world third largest cryptocurrency after Bitcoin and Ethereum. Ripple has remained at this position for a long time, but now, its rule is overpowered by USDT.
USDT Replaces XRP
The dollar-backed token who was introduced as to establish a quick bridge between the US dollar and a cryptocurrency is now itself the world’s third-biggest cryptocurrency by market cap. It is interesting to see whether it will get successful in replacing the Ethereum from the number two position. Since the start of the year, USDT doubled in its market cap. If it again doubles in market capitalization, it would easily overrun Ethereum.
Once, XRP overtook world top digital asset Bitcoin for a brief time, and it also briefly overrun Eth in 2018. But now, it has knocked down by stablecoin pegged to the US dollar, which shows that stabecoin’s era has come.
$212 billion Transacted via Tether in 2019
Per the new study unveiled by The Block, $212 billion were transacted via Tether in 2019. Now, it is comprised of the 85% share of the stablecoins market, and USDT is hosted on various platforms, including Ethereum, Omni, and Tron. Omni’s control is decreased by 14% while Ethereum and Tron are surged by 151% and 118% respectively.
“Do you think Tether has more use cases than Xrp?” a Twitter user asked from Ripple CTO. David Schwartz said in a reply:
“I think they have different use cases. I don’t think an asset pegged to one country’s fiat through a central party you have to trust can be universal. But XRP has volatility that makes it harder to use in many use cases.”
The stablecoins have surged rapidly in the first quarter of 2020, and the major credit goes to Coronavirus pandemic. Facebook is also launching stablecoins backed by various fiat currencies.
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