The market capitalization of Tether’s USDT stablecoin surpassed $40 billion, data from industry aggregator Coinmarketcap shows, further helping it cement its position as the world’s largest stablecoin.
The ‘Tetherization’ continues at a pace with many crypto exchanges denominating pairs in USDt rather than bitcoin, the token issuer said.
“USDt is increasingly being used in remittances and innovative projects in the digital token ecosystem, including those in the nascent space of decentralised finance (DeFi),” they added in a statement.
Tether is closely associated with Bitfinex and works across a variety of blockchains including Algorand (Bitcoin Cash’s SLP), Ethereum, EOS Liquid Network Omni, Tron, Tron, Tron, Tron, Omni, EOS, Liquid Network, Omni, and EOS.
Tether is currently the fourth largest cryptocurrency in terms of market capitalization. It has seen a rapid rise in demand from corporate and institutional institutions over the past two months. The token has grown in value by $20 billion over the past year, more than all other stablecoins combined.
Comparatively, the market capital of this dollar-pegged coin was $20 billion at January 1. It soared to $26billion a month later, and reached $35billion in March. Tether has seen its market cap increase by more than half in the past three months.
The recent rally was also supported by the news Bitfinex allegedly paying back $550 million to Tether. This amount now covers more than 100 per cent of the $750 million loan they took out two year ago.
Bitfinex is a parent company of Tether and agreed to pay $18.5million to settle New York’s Attorney general’s claims that they had lied about their reserves.
The token’s ability to prevent volatility has led to a surge in demand for USDt in e-commerce as well as payments. Online retailers and payment gateways also benefited from quicker and cheaper transactions than traditional credit cards or other payment systems.
This milestone was made possible by the growing interest in Decentralised Finance (DeFi) as well as OTC desks that use tokens to settle block trades over the counter.
Paolo Ardoino (CTO of Tether), commented on the news. “Crossing US$40billion represents an important milestone in Tether’s history. Our growth is a reflection of the central role Tether plays within the global digital token ecosystem. Tether is loved by many. Tether is a stable, liquid and reliable stablecoin that can be trusted by traders, developers, and others.