Tether USDT, the most popular stablecoin in the world has set a new record as its market capitalization crossed the $40 billion mark, reaching an all-time-high. The DeCahined had earlier reported a 44.9% rise in USDT market cap.
Based on CoinGecko report, Tether USDT is now the fourth largest cryptocurrency by market cap just behind other leading crypto assets like Bitcoin, Ethereum and Binance coin. Its market capitalization now equals that of eBay and would soon exceed that of the Bank of New York Mellon Corporation. Based on daily trading volume, Tether USDT is the biggest cryptocurrency with a daily trading volume of $87 billion, compared to second placed Bitcoin whose daily trading volume stands at $57 million.
Cryptocurrencies are beginning to attract growing interest globally and stablecoins are not left out. Newbie investors who lack the know-how of how the crypto market works and are generally risk averse prefer the stability that USDT and others stablecoins offer.
Reasons Behind Tether’s Growth
USDT market cap has risen ten-fold in the last one year. This is an indication of the overall growth of the cryptocurrency market.
Corporate and institutional investors form the biggest share of Tether’s market cap contributing about $19 billion since the start of 2021. This is more than the market cap of all other stablecoins combined.
Tether’s use as a means in e-commerce and as a means of payment is steadily growing as it offers a better means of exchange and lower transaction fees. It’s also supported by several payment platforms e-commerce gateways. Compared to credit cards and fiat payment systems, USDT offers a faster means of payment.
Tether has recently been under investigation based on allegation that it’s only pegged loosely to the USD. Its affiliation to Bitfinex also brought it under close scrutiny.