Tether Doubles Market Cap In Four Months To $10 Billion Making It The Third-Largest Cryptocurrency

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Tether (USDT) has seen its market capitalization surge to over $10 billion as the most trusted and liquid stablecoin continues to experience substantial growth. Following the surge, the stablecoin has cemented its position in the industry as the third-largest crypto by market cap surpassing XRP.

Tether is the third-largest crypto by market cap

The announcement comes barely four months since Tether hit the $5 billion market cap in March. This is a huge milestone for Tether and solidifies its position in the industry. Tether announced the milestone which was also observed vial market price aggregator CoinGecko.

According to a press release from Tether,  the importance of its USDT token has grown significantly as the most trusted stablecoin that plays a vital role in the virtual assets ecosystem. The company also added that its native token is the crypto’s reserve currency and it is increasingly being used in innovative projects and remittances in the cryptocurrency industry that includes decentralized finance (DeFi).

Cointelegraph reported previously that most of the growth for Tether’s native token is a result of the current fiat on exchanges that are converted to USDT. Bitfinex and Tether CTO, Paolo Ardoino said that the success of Tether will be in the future be considered to have played a vital role in the emergence of cryptocurrency as an important asset class. He said that they are proud that tether has hit the $10 billion mark with the native token significantly supported within the cryptocurrency ecosystem.

Ethereum holds around $6 Billion USDT

Currently, Tether transfers account for most of the transactions and value on several chains where it is available. For instance, it is among the largest Ethereum consumer with more than $6 billion USDT currently available as an ERC-20 token. The growth of the token on the Ethereum network might be associated with the growth of DeFi.

Equally, its next largets host is Tron which holds more than $2.8 billion USDT which is over 2.5x TRX’s market cap. According to Tether’s transparency page, Bitcoin (BTC)-based USDT on Omni is the third largest with $1.3 billion. some other less popular protocols include Algorand, Liquid, and EOS with Liquid having the largest presence with $17 million USDT.

USDT could face competition from central bank-backed digital currencies

A report by blockchain analytics company Flipside Crypto indicated that Tether’s native token is mostly circulating in centralized exchange platforms for arbitrage. USDT is currently the top non-government stablecoin with cryptocurrency rivals lagging in most metrics. However possible competition could come from digital currencies of central banks that could be issued to replace the current fiat currency system.

But the firm sees that Tether and the central bank-backed digital currencies coexisting because of the multiplatform nature of Tether. Equally, experts share the same opinion arguing that the two stable coins will serve different uses.  Interestingly the central bank digital currencies will be under much surveillance and as a result native tokens sus as USDT will be a way of avoiding the prying eyes of the government.

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