Just recently, the world of crypto investors and traders was caught unaware, as Tether’s market capitalization surged close to the $10 billion market capitalization.
Tether, which was trading at $1 at the time this report was drafted, has a market capitalization of $9.8 billion, according to data obtained from Coinmarketcap. It is now bigger than XRP, whose market capitalization is roughly $7.8 billion.
Why it matters: Tether continues to grow its lead on its stablecoin competitors and is still the only stablecoin with a market capitalization greater than $1 billion.
The $10 billion mark is not fundamentally significant, but it is a sign of USDT’s staying power, despite all its controversy over the years.
Quick fact: 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.
Barely weeks ago, Bloomberg reports stated that the momentum with the help of the U.S dollar was expected to make Tether gain and move to the second spot.
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“Absent an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to take the No. 2 spot in total assets behind Bitcoin. Receiving help from widespread adoption with a workable case as a proxy for the world’s reserve currency, there seems little to stop the increasing adoption of the dollar-linked stable coin,” the report stated.