The market cap of Tether (USDT), a U.S. dollar-pegged stablecoin, has surged in current weeks, probably serving to to gas the current Bitcoin (BTC) rally that drove costs to close all-time highs.
Paolo Ardoino, who serves as twin CTO to Bitfinex and Tether, tweeted Thursday that the availability of USDT elevated by 1 billion over 9 days, marking the second-fastest growth in its historical past. The document was set on Sept. 4, 2020 when, over eight days, USDT’s circulating provide elevated by 1 billion.
At press time, Tether had a market cap of practically $19 billion, that means that there are roughly 19 billion USDT in circulation at a worth of $1.00.
Tether’s market cap has elevated by practically 4 instances because the begin of 2020, in accordance with CoinMarketCap knowledge.
Tether market cap by CoinMarketCap
On the present circulating provide, Tether has the fourth-highest market capitalization of any cryptocurrency.
USDT and different so-called stablecoins provide fiat onramps to cryptocurrency markets, thereby minimizing worth volatility and guaranteeing simple redeemability as soon as digital belongings are offered. Though USDT is supposedly backed by actual U.S. greenback reserves, Tether has by no means produced a full audit of its financial institution accounts.
In 2019, a Bloomberg report claimed that Tether’s USDT was not fully pegged to the greenback, however slightly that the circulating provide is just backed by 74% in money and short-term securities.
Tether can be run by the identical administration group that oversees Bitfinex, one of many largest cryptocurrency exchanges on this planet. It has been alleged that Tether and Bitinex manipulated the 2017 bull market, although proving such a declare is tough as a result of advanced nature of decentralized cryptocurrency markets.
Authorized specialists knowledgeable Cointelegraph earlier this yr that the scope of market manipulation in an asset as novel as Bitcoin shall be tough to ascertain.
Within the meantime, Tether stays the dominant stablecoin within the trade, accounting for greater than three-quarters of the stablecoin market cap.