Tether’s USDT stablecoin market capitalization has surpassed $35 Billion today, cementing its position as the largest stablecoin in the world.
Tether is closely associated with Bitfinex crypto exchange. It works across a variety of blockchains including Algorand and Bitcoin Cash’s SLP.
Tether is the 5th 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 to $14 billion in the last year, more than all the other stablecoins combined.
Comparatively, the market capital of this dollar-pegged coin was $20 billion at January 1. It soared to $26 one month later. Tether has achieved roughly half its total market cap in the past three months.
Tether received $550 million from Bitfinex, which is now more than 100 per cent of the $750 million loan they took out two-years ago. This was a significant boost to February’s rally.
Bitfinex is a parent company of Tether and agreed to pay $18.5million to settle New York’s Attorney general’s allegations they lied about the reserves.
The demand for USDT has increased in the e-commerce space and the payments sector. This token is able to prevent volatility. Online retailers and payment gateways also benefited from quicker, more affordable transactions compared to traditional payment systems and credit cards.
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 at Tether), commented on the news. “The market has once more spoken: people like Tether. Tether’s utility in the digital token ecosystem is evident in our growth, as the market capitalization for bitcoin has recently surpassed the US$1 trillion mark. Tether plays a key role in disrupting the financial system. It powers many projects within the cryptocurrency space. As we create an alternative financial system, we overcome challenges that were once considered impossible.
