Skew: USDT market cap figure is targeting the $10 billion level
According to the CTO of Paolo Ardoino, Tether has earned $ 5 billion in just the past six months. And until today, from past achievements, USDT market cap has been steadily increasing this year and could soon reach $ 10 billion.
USDT market cap is marching towards $10bln pic.twitter.com/ebJXmS4SmV
— skew (@skewdotcom) June 9, 2020
The market cap of USDT is on the way to $ 10 billion
According to data from cryptocurrency analysis firm Skew, USDT’s market capitalization is currently at more than $ 9.3 billion. This proves that Tether has witnessed a significant increase in market capitalization this year. The company’s data has shown that half of the growth USDT has seen happened in 2020, with the past two months seeing record upticks.
Graph Conc Bitcoin’s price with Tether’s market capitalization from 2016 to 2020 | Source: Skew
However, market capitalization is not the only data to witness significant growth. Besides, Tether recorded 282,000 transactions on August 8. This is not big news because Tether has surpassed Bitcoin for the first time since its inception, as Bitcoin only recorded. 254,000 same-day transactions.
Significant day for USDT on Ethereum yesterday. For the first time since its inception, it had more daily transactions than Bitcoin (282k vs 254k). It’s dominating the Ethereum network. Currently, Tether has 10x more transcations than any other ERC20. @paoloardoino @Tether_to 👏 pic.twitter.com/RxARMXaT5U
— Vivek (@realvivek_) June 9, 2020
The reason why Tether’s market capitalization soared this year is due to increased demand. In an interview on the “On The Bring With Castle Island” podcast, Paolo Ardoino, CTO of Tether and Bitfinex, said the demand for USDT was driven by exchanges strapped for cash.
“The market crash that took place in mid-March caused many to get stuck on fiat on-ramp exchanges as they could haven’t turned their diminishing crypto holdings into fiat fast enough.”
“The most significant inflow of money into Tether wasn’t coming from new investors looking to get into the market. Almost all of the demand for Tether in the past several months was driven by exchanges who wanted more USDT on their platform to obtain more liquidity.”
He believed that Tether is absorbing part of the cash wealth that is sitting in cash in bank accounts on many other exchanges. We can see that OTC desks that have started dealing massively in Tether as well.
Market cap Tether, unlike other cryptocurrencies, seldom goes down and therefore, will continue to be a leading cryptocurrency by market cap for a long time.
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