Tether is the most recognized and prominent stablecoin out of all due to its high recognition thanks to its billion dollars market capitalization. The recent data by crypto data firm shows that USDT has successfully crossed $10 billion in market cap.
Per the data shared by crypto analytical firm Messari, Tether goes the first time above $10 billion in market cap. It is now included in the top three coins based on market cap, and it has proved itself as the most used stablecoin in the crypto market.
At the start of the year, USDT was standing around $4.1 billion which is much less than the current value. Since then, it has surged by 144% and has crossed the big figure of $10 billion.
It’s surprising that the famous crypto aggregator platform CoinMarketCap tells a different story. According to it, Tether’s circulation worth is just over $9 billion.
“USDT continues to grow its lead on its stablecoin competitors, and is still the only stablecoin with a market capitalization greater than $1 billion.”
For many years, stabecoin has been severely criticized by the community, and the narrative of no staying power remained in the crypto community. The company also said that “$10 billion mark is not fundamentally significant, but it is a sign of USDT’s staying power despite all its controversy over the years.”
There may be some reasons why Tether is leaving behind other stabecoin projects such as USDC, TUSD, and PAX. First, the KYC process is not very comprehensive and users will not have to pass through a complex KYC process.
The second reason for USDT’s success is its popularity among Chinese investors. As the Chinese government does not allow individual to buy Bitcoin against the state currency yuan, therefore, investors seek USDT. To have access to USDT, investors prefer brokerage firms and other over-the-counter (OTC) desks. So, it’s an alternative to Bitcoin in China.
After USDT, USD Coin (USDC) has made rapid success in achieving the figure of $930 million from $450 million since January 2020.