Tether Limited, the company that issued the Tether (USDT) stablecoin, has reached another important milestone. They have now exceeded the market capitalization of $20 billion for the first time since its inception. This record valuation for the stablecoin comes when both Ether and Bitcoin are performing well in the market. The company also posted an official update on Twitter where it mentioned this huge achievement. They were happy to disclose that the company had reached a market capitalization of $20 billion. Consequently, Tether is now officially the first-ever stablecoin pegged to the US dollar, which now has a market capitalization of $20 billion.
According to the latest tweet by Tether, it means that there is now $20 billion of USDT, which can be transferred across different blockchain platforms and is currently active there. The market capitalization of the stablecoin had been less than $4.5 billion in January of the year. However, it had skyrocketed literally and had ended up being multiplied by a factor higher by 4. At the end of July, the US-dollar pegged stablecoin’s market capitalization had reached $10 billion, which means it had doubled within 5 months. One of the primary reasons for the unprecedented surge in Tether’s market price is because of the key role the stablecoin plays.
Currently, it is classified as the most popular stablecoin in the world by a fair margin. Nearly all of the crypto exchanges that exist offer USDT trading pairings to their clients. As a matter of fact, some of them have even used the token as a replacement of USD. This is primarily because of the popularity of the stablecoin within the stablecoin and crypto community. In addition, there are some crypto exchanges that don’t have any USD trading pairs available because they just don’t provide support for fiat currencies. Therefore, the alternative is to offer clients trading pairs that involve stablecoins, which are pegged to the USD.
In this regard, the USDT stablecoin has become the most popular option. As far as average trading volumes are concerned, Ethereum and Bitcoin appear to be doing quite well, but in comparison, Tether is doing a lot better than the two cryptocurrencies. The daily trading volume for BTC and Ethereum is close to $15 billion and $20 billion, respectively. In contrast, Tether’s daily trading volume is close to a staggering $75 billion. This makes it nearly triple of each of Bitcoin’s and Ethereum’s trading volumes.
Moreover, Tether is also doing quite well where remittances are concerned. It is also being used in some innovative projects, such as decentralized finance (DeFi). Paolo Ardoino, the Chief Technology Officer at Tether said that the growth of the stablecoin had been rather impressive. He said that the company would continue to stay at the forefront of innovations in the next year. Previously, minting of new tokens regularly had struck up a controversy because experts said that it didn’t just offer liquidity incentives, but also raised BTC’s price. However, Tether’s demand has surged and it has become the most preferred stablecoin for now.