Tether (USDT), the world’s largest stable coin by market capitalization, continues to grow despite losses in the cryptocurrency space. broke records triggered by Elon Musk’s criticism of Bitcoin (BTC).
On Monday, Tether’s market capitalization hit $ 60 billion for the first time in history, marking another milestone for stable coin growth.. According to Tether Transparency, the market value of USDT at the time of writing is $ 60.4 billion, up more than 580% year over year.
Tether’s new market cap record follows a series of newly minted USDT tokens at Tether Treasury. According to data from blockchain analytics service Whale Alert, at least 6 billion new Tether USDT tokens have been minted in the treasury in the past 30 days, and the last 1 billion USDT batch was minted on May 24th. According to an ad for Tether, Institutional and corporate demand is the main driver of Tether’s continued growth.
USDT has repeatedly exceeded new market cap milestones in the past two months$ 10 billion more is being reached every month.
Tether entered the top 3 largest cryptocurrencies by market capitalization, along with Bitcoin (BTC) and Ether (ETH). and it has gained ground as the third largest cryptocurrency by market cap in the past few days, outperforming Binance Coin (BNB) on May 23.
Tether’s continued growth is due to the enormous volatility of cryptocurrencies. The market has lost $ 1 trillion since its mid-May high of over $ 2.5 trillion. Bitcoin, which became an asset of $ 1 trillion earlier this year, lost more than $ 400 billion in the recent market crash. Its market cap was over $ 720 billion at the time of this writing.
Tether’s CTO, Paolo Ardoino underlined that periods of enormous crypto volatility were often linked to stablecoin growth:
During these extreme episodes, we have historically seen a surge in stablecoin activity, evident in Tether’s recent milestone of $ 60 billion in market cap as demand continued to grow. Events like this even support the strength of the ecosystem and help everyone focus on building again rather than distracting the price gains. “
Founded in 2014, Tether USDT is an important stable coin that is pegged to a 1: 1 exchange rate to the US dollar. As the largest stable coin in the world Tether currently accounts for 60% of the combined stable coin cap of $ 100 billion. based on CoinGecko data. USDT’s biggest rival, USD Coin (USDC), is the eighth cryptocurrency by market value with a capitalization of $ 20 billion.
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