Tether (USDT), the world’s largest stablecoin and the third-largest cryptocurrency by market cap, has asserted its dominance in the cryptocurrency market and is now close to achieving a significant milestone. Recent data shows a massive influx of money in the cryptocurrency industry last week, with over $1 billion invested in stablecoins.
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Naturally, the majority of this inflow has gone into Tether (USDT), pushing its market cap to an unprecedented level of $120 billion.
Tether (USDT) leads the stablecoin market
Stablecoins are one of the innovative applications of blockchain technology. Their uses have grown over the years, from trading with other cryptocurrencies to increasing use in lending platforms and payments for goods and services. The stablecoin market has seen massive growth since the beginning of the year. This growth has been largely driven by the increase in investments in the cryptocurrency industry since the beginning of the year, which has contributed to its adoption.
According data from IntoTheBlockThe stablecoin market had a total market cap of $122 billion as of October 2023. However, the bullish trend since then has pushed the total market cap to over $169 billion as of September 2024, representing an increase of 38.5%. Moreover, the data shows that the inflow has increased by 1.71% compared to last month.
To the The helm of the stablecoin market is Tetherwhich has the largest market cap share. At the time of writing, Tether’s market cap sits just shy of the $120 billion mark, with a steady flow of new capital pouring into the stablecoin. Notably, Tether currently has a market cap of $119 billion, representing a 70.4% share among all stablecoins. USDC, the second-largest stablecoin, has a current market cap of $35.88 billion.
This growth is largely due to USDT’s ability to maintain its value pegged to the US dollar over the years, making it an attractive option for traders seeking stability amid market turbulence.
What’s next for Tether and stablecoins?
The influx of capital into the stablecoin sector highlights the growing interest in stable digital assets, especially in light of rising concerns about inflation and weakening fiat currencies in developing countries. At this rate, Tether’s dominance among stablecoins will continue to grow.
Last week, Tether’s Treasury coined 1 billion USDT on the Ethereum blockchain and another 100 million USDT on the Tron blockchain.
Interestingly, other smaller market cap stablecoins have also benefited from this surge in interest in stablecoins. One of them is First Digital USD (FDUSD), whose market cap has seen a 47% increase in the past 30 days and now stands at $2.94 billion.
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Adding to this momentum is Ripple, the company behind XRP. Ripple recently announced plans to enter the stablecoin space with its Ripple USD (RUSD) stablecoin with the aim of connecting global financial institutions and businesses. Given Ripple’s established presence in the global banking sector, RUSD is expected to see significant growth following its launch.
Featured image from Pexels, chart from TradingView
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