Tether dollar (USDt) has surpassed $20 billion in market capitalization.
At the beginning of 2020 the market capitalization of the main stablecoin pegged to the US dollar was less than 4.5 billion, but during 2020 it literally exploded, multiplying by a factor of more than 4.
The 10 billion mark was surpassed at the end of July, and since then it has doubled in less than five months.
The crossing of the 20 billion threshold took place yesterday, but it’s since 4 December that the final climb from 19.5 billion to 20 began.
The fact is that Tether tokens play a key role within the digital token ecosystem, as many crypto exchanges offer USDt exchange pairs, often even replacing USD ones.
In fact, some exchanges, including DEX, do not support fiat currency, so they cannot offer exchange pairs in US dollars (USD). The alternative solution is to offer exchange pairs in stablecoin tokens pegged to the dollar value, and among these USDt is by far the most used.
Tether, record volumes and market cap
Indeed, the average trading volumes of Tether tokens on crypto cash markets are the highest ever, more even than Bitcoin and Ethereum.
While more or less the daily trading volume in BTC is around $15 billion, and that of ETH around $20 billion, that of USDt exceeds $75 billion.
Tether is also increasingly being used for remittances, and in innovative projects in the digital token ecosystem, including those at DeFi. It should be mentioned that USDt exists on several blockchains, including, in addition to Ethereum, Algorand, Bitcoin Cash’s Simple Ledger Protocol (SLP), EOS, Liquid Network, Omni, and Tron.
In February 2019 there were about 2 billion USDt in circulation, now there are ten times as many.
Tether’s CTO, Paolo Ardoino, stated:
“As the year draws to a close, we can only reflect on Tether’s impressive growth. The market has spoken: people trust Tether and love using the most liquid and stable stablecoin. Tether will continue to be at the forefront of stablecoin innovation in 2021.”