Tether's USDT Stablecoin Touches $100B Market Cap, Benefiting From Crypto Trading Frenzy
Despite years-long scrutiny over Tether's stability, USDT saw a rapid resurgence in 2023 benefiting from its close competitors' troubles
- Tether's USDT touched the $100 billion market cap threshold Monday for the first time in its history, CoinGecko data shows.
- USDT grew by $2 billion over the past week, benefiting from increased demand for liquidity for crypto trading.
USDT, a stablecoin issued by Tether, briefly hit $100 billion in market capitalization for the first time in its history, according to CoinGecko data, as the rally on crypto markets expanded.
While the number of USDT tokens stood at around 99.5 billion, according to Tether's website, a slight price premium over the token's $1 price peg on some exchanges was enough to push the market cap above that level for a short while.
USDT is on track to decisively surpass the threshold again soon if it continues its current growth trajectory, having added $2 billion to its supply over the past week, as it benefits from the crypto trading frenzy that's driving bitcoin (BTC) nearer to a record high.
USDT is the most popular stablecoin, or crypto token whose value is pegged to another asset, and a key piece of plumbing in the digital asset market. It serves as a bridge between traditional (fiat) money and blockchain-based markets providing market participants with liquidity for trading and lending. It is also increasingly used for transfers and savings in developing regions to access dollars outside of the traditional banking system.
Tether’s history dates back to 2014, when it first issued a dollar-backed digital currency called "realcoin" on the Bitcoin network to help transfer fiat currencies on the blockchain. Later that year, realcoin was rebranded to tether (USDT). Since then, USDT has expanded to numerous blockchains and Tether has launched stablecoins pegged to gold and other currencies.
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Despite years-long scrutiny over Tether's stability, USDT saw a rapid resurgence in 2023 benefiting from its close competitors' troubles
- Tether's USDT touched the $100 billion market cap threshold Monday for the first time in its history, CoinGecko data shows.
- USDT grew by $2 billion over the past week, benefiting from increased demand for liquidity for crypto trading.
USDT, a stablecoin issued by Tether, briefly hit $100 billion in market capitalization for the first time in its history, according to CoinGecko data, as the rally on crypto markets expanded.
While the number of USDT tokens stood at around 99.5 billion, according to Tether's website, a slight price premium over the token's $1 price peg on some exchanges was enough to push the market cap above that level for a short while.
USDT is on track to decisively surpass the threshold again soon if it continues its current growth trajectory, having added $2 billion to its supply over the past week, as it benefits from the crypto trading frenzy that's driving bitcoin (BTC) nearer to a record high.
USDT is the most popular stablecoin, or crypto token whose value is pegged to another asset, and a key piece of plumbing in the digital asset market. It serves as a bridge between traditional (fiat) money and blockchain-based markets providing market participants with liquidity for trading and lending. It is also increasingly used for transfers and savings in developing regions to access dollars outside of the traditional banking system.
Tether’s history dates back to 2014, when it first issued a dollar-backed digital currency called "realcoin" on the Bitcoin network to help transfer fiat currencies on the blockchain. Later that year, realcoin was rebranded to tether (USDT). Since then, USDT has expanded to numerous blockchains and Tether has launched stablecoins pegged to gold and other currencies.