304 Interactions, 4 today
Tether (USDT), the world’s most liquid stablecoin, reached $40 billion in market capitalisation on Wednesday, reflecting the year-long exponential rise in cryptocurrency investment.
According to CoinGecko, Tether’s market value hit $40.1 billion at its peak on Wednesday, rendering it the fourth-largest crypto asset behind Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
Tether is four times higher than the USD Coin (USDC), which has a market value of about $10 billion, in terms of stablecoin rankings. According to Messari, USDT supremacy is currently about 67 percent.
Tether’s market capitalisation has increased by a factor of ten in the last year, reflecting the phenomenal success of the cryptocurrency market. The estimated crypto market cap reached $1 trillion for the first time in January, before reaching $1.8 trillion earlier this month.
Tether has just surpassed a $40B market cap! 🎉
In March 2020, Tether’s market cap was $4 billion! Since then, we’ve seen 900% growth in only one year! 👩🏽🚀🚀
— Tether (@Tether_to) March 24, 2021
Since its availability represents the market’s appetite for cryptocurrencies, USDT is regarded as a bellwether stablecoin. On several global exchanges, including Bitfinex, which has one of the most liquid BTC markets in the world, USDT is the quotation currency for cryptocurrencies.
Nonetheless, the stablecoin has been the target of extreme criticism in the past due to reports that it is just closely pegged to the US dollar. Its connections to Bitfinex, a leading cryptocurrency exchange, have also drawn a lot of attention to USDT.
Most of the confusion, anxiety, and scepticism were alleviated earlier this month when Bitfinex and Tether reached a settlement with the Office of the New York Attorney General in a lawsuit against Tether. As part of a compromise, the firms were required to pay $18.5 million and to disclose their reserves every quarter for the next two years.