- Tether’s market cap hits the $10 billion mark
- USDT is the third currency in the $10 billion range
- The stablecoin’s growth may be a sign of increasing interest in crypto
Cryptocurrency News Today – recall that we previously reported that the market cap of Tether (USDT) was approaching the $10 billion mark. Now, it has reached this milestone. This week, after large minting of tokens, Tether’s market cap reached $10 billion. According to Ryan Watkins, an analyst with Messari, Tether’s market cap passed $10 billion on Tuesday, June 30. It is currently the third digital currency in this range.
At the beginning of this year, the market cap of the asset drew closer to the $4.5 billion mark. At the beginning of 2019, Tether’s market cap was under $3 billion. However, according to the USDT chart shared by Watkins, Tether’s market cap has now crossed $10 billion. Some attribute this growth to the increasing interest in digital currencies.
Compound’s Effect on Tether (USDT)
Because Tether’s USDT can easily be transacted into cryptocurrencies like Bitcoin, and Ethereum, to name a few, firms and whales can theoretically mint digital assets via Tether. After which they can send their tokens to exchanges to be traded for the USDT. Even though this goes the other way around, traders that could not liquidate their tokens into fiat. Instead, the majority of them opted for USDT. USDT’s total market cap may be benefiting from massive growth in DeFi (decentralized finance), particularly from the Compound project.
Compound is an Ether-based money-market project that gives investors an avenue to borrow and make cash through lending out digital assets. The platform currently supports coins like Ethereum (ETH) and Basic Attention Token (BAT). It also supports stablecoins like DAI and Tether (USDT). As a result of several factors, USDT has become arguably one of the most important coins on Compound.
The Importance of Tether to the Crypto Industry Has Grown
At a point last week, Compound token reported that there was $150 million worth of Tether deposited in their network. This is only a fraction of their total supply cap. However, the rise in demand for Tether may have ensured that investors send money with Tether to get USDT in return. Now that USDT’s market cap has moved past the $10 billion mark, it’s paramount to state that the token has now become an essential part of the industry. This position is now more pronounced. According to Qiao Wang, a former Messari executive, and crypto commentator:
“Three firms that if something bad happened to today, would negatively affect the market include Silvergate, Genesis, and Tether.”
The total market capitalization of Tether maybe seating around 4-5% of the overall cryptocurrency market. Despite this USDT accounts for the bulk of the overall volume and on-chain value of all digital assets. This can be confirmed by the fact that more exchanges and service providers are adopting USDT.