Tether’s CTO acknowledged that hitting a market cap of $50 billion is a significant milestone for the stablecoin. He also went further to say that “the growth and success of the stablecoin is a blueprint for Central Bank Digital Currencies (CBDC)”.
In recent times, more countries have welcomed the idea of creating and adopting a digital currency, one that mimics fiat in value and stability.
Tether is the first stablecoin in the crypto ecosystem and is also the most popularly utilized stablecoin. Many exchanges make use of USDT as a base pair for other cryptocurrencies. Currently, the asset accounts for over 66% of the stablecoin market, per data from Messari.
How Tether Maintains its Stability
Some time ago, some crypto users were insecure about Tether reserves which lacked complete information at the time. However, reports from Moore Cayman cleared the air about the uncertainties users expressed about the token.
Cayman confirmed that USDT tokens are fully backed by reserves and all tokens redeemed from sellers are destroyed to maintain a demand-supply balance. This balance and stability ensure that its value does not deviate far off from the US Dollar.
Tether is a reliable alternative for deposits and withdrawals on exchanges. Its stability makes it easier for traders to gauge their profits and loss. This unique feature of the token has made it generally acceptable and has increased its adoption.