After a big milestone that was hit in March 2020, Tether hit another milestone today when its market cap touched $10 billion.
In March 2020 we hit a big milestone as our market capitalization hit $5 billion. Now only four months later we’ve surpassed a $10 billion market capitalization 🔝
— Tether (@Tether_to) July 22, 2020
At the time of writing, the USDT/INR pair was trading at 76.96 on CoinDCX’s platform. Coinmarketcap’s website mentioned that USDT was trading at $1 and with a circulating supply of 9,187,991,663 USDT ranked 3rd. It is only behind Bitcoin and Ethereum.
For those who do not know, Tether (USDT) is a cryptocurrency that was created in 2014 with an idea of creating a digital dollar. It is a stablecoin that is fully backed by the US Dollars in a 1:1 ratio. This means that all the Tethers in circulation reflect the amount of reserves in US Dollars and are supposed to be priced close to $1. The purpose of Tether is to convert cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan. Tether (USDT) is issued on the TRON, Ethereum (ETH), EOS and many other blockchains. It is also the most common and used stablecoin amongst all coins that we know. Unlike DAI which is decentralized, Tether is not.
This stablecoin’s success can be attributed to many factors and transparency is one of them. The official website of Tether (USDT) posts a revised version of its reserves on a daily basis. Another reason that has made it so popular among people is its liquidity and its ability to act as a hedge against market volatility.
Lastly, the table obtained from Cryptoslate below shows how Tether is compared to the other stablecoins that are available in the market. While USDT’s market cap is almost 9 times more than USDC’s, other stablecoins do not even stand close to it.
USDT, along with other stablecoins have got a long way to go. With increasing use of stablecoins and the growing popularity of DeFi, another important metric to look at is the daily transaction count. Looking at the chart below, it is evident that the daily transaction count for USDT has been rising as compared to that of Bitcoin.
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