The Issuer of Tether (USDT) stablecoin Tether Limited, has reached yet another milestone, as the company has exceeded $20 billion in market capitalization for the first time since it came into existence.
The record high for the stablecoin is coming when both Bitcoin and Ether are doing pretty well. The official Twitter update about the landmark reads, “Tether has just surpassed a $20B market capitalization!”
Tether has just surpassed a $20B market capitalization! 🎉
This fantastic milestone is another confirmation for Tether maintaining its number one spot as the most liquid, stable and trusted currency! pic.twitter.com/sorWjzChIo
— Tether (@Tether_to) December 18, 2020
As a result, the token is officially the first-ever dollar-pegged token to surpass $20 billion in market capitalization.
Based on the latest tweet by Tether, there is now over $20 billion worth of USDT transferable and active across different blockchain platforms.
In January, the market cap of the stablecoin pegged to the USD was less than $4.5 billion. However, it literarily skyrocketed and multiplied by a factor higher than 4. By the end of July, the market cap surpassed $10 billion, doubling within 5 months.
USDT playing a key role in the market
One of the reasons for the unprecedented rise of Tether is the key role the USDT plays. Currently, it’s the world’s most popular stablecoin by a fair margin. Almost all crypto exchanges offer USDT trading pairs, while some even replace USD with the token. This is a result of its popularity within the crypto and stablecoin community.
Also, some crypto exchanges don’t offer USD trading pairs because they don’t offer support for fiat currencies.
As a result, the alternative is to offer trading pairs on stablecoin tokens pegged to USD, making USDT the most popular stablecoin in that regard.
Higher average volumes
While the daily trading volume of ETH is around $20 billion BTC’s volume is close to $15 billion, the daily trading volume for USDT is $75 billion. This more than triples each of their trading volumes.
Tether is also doing well when it comes to remittances, as well as being used for innovative projects such as DeFi.
The most preferred stablecoin
The Chief Technology Officer of Tether Paolo Ardoino said Tether’s growth has been quite impressive.
“As the year draws to a close, we can only reflect on Tether’s impressive growth,” he pointed out, adding that the company will still be at the forefront of innovations in stablecoins in 2021.
In the past, there used to be controversy on the regular minting of new tokens. Some industry experts claimed that it doesn’t only provide liquidity incentives but artificially raise BTC price growth.
But the demand for Tether as the main entry and exit point for other cryptos has increased, making it the most preferred stablecoin at the moment.