Tether has surged past XRP in market capitalization for the second time running, in less than 10 days. It has become the third most valuable cryptocurrency based on the rush for digital coins with more stable prices.
Tether, trading at $1 at the time this report was drafted, has a market capitalization of $8.803 Billion, according to data obtained from coinmarketcap. It is now bigger than XRP, whose market capitalization is roughly $8.58 billion now.
Tether is currently second only to Ethereum (ETH) as the most valuable altcoin in the cryptocurrency market.
What you need to know: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies, like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.
Meanwhile, XRP (the currency of Ripple) dropped to the fourth-largest cryptocurrency by market capitalization, as the price of the digital coin has been a bit unimpressive lately.
The growth of Tether’s market capitalization has largely resulted from tether seeing massive buying surge from countries like China, because of its quality of being a stable coin.
What are Stablecoins?: Stablecoins are cryptocurrencies created to minimize the price swings that occur in a crypto asset. They are usually pegged to fiat currencies and often exchange-traded commodities.
Global Investors and traders are using it to give their investment portfolios exposure to the US Dollar during these times when uncertainty is high as a result of the worst pandemic (COVID-19) known to man.