Weeks ago, NewsBTC reported that the market cap of leading crypto stablecoin tether (USDT) was $ 10 billion. The milestone was reached this week after a large coinage.
Related Reading: A hacker just pulled $ 500,000 from Ethereum & Altcoins from a DeFi app
Crypto's “reserve currency” has a market cap of $ 10 billion
According to Messarian analyst Ryan Watkins, USDT's market cap was $ 10 billion on June 30. It is the third cryptocurrency in this 10-digit range. "
At the beginning of the year, the asset's market cap was closer to $ 4.5 billion. In early 2019, the number was well below $ 3 billion.
Chart of USDT's market capitalization shared by Messari analyst Ryan Watkins, a former investment banker.
Some see the growth of USDT's market capitalization as a sign of increasing interest in cryptocurrency.
Since USDT can easily be converted into Bitcoin, Ethereum and other transactions, companies / large traders can theoretically mint the asset via Tether. They can then send the coins to exchanges to exchange them for the asset.
However, this goes in the other direction: Paolo Ardoino said In a podcast, traders who couldn't liquidate their coins in Fiat in March chose USDT instead. Ardonio is CTO of Tether and Bitfinex.
The compound effect on the leash
USDT's market cap can also benefit from the growth of decentralized funding, particularly the compound protocol.
Compound is an Ethereum-based money market protocol that allows investors to borrow and make money by borrowing cryptocurrencies. The platform supports assets from Ethereum and Basic Attention Token to stablecoins like DAI and USDT.
Due to a number of variables, USDT has quickly become one of the most popular coins on the platform.
At a time last week, connection reported that the USDT protocol contained more than $ 150 million.
This is only a fraction of the total delivery limit. But the growing demand for the stable coin may have spurred investors enough to send money to Tether and receive USDT for it.
The importance for the crypto industry is growing
With a USDT market cap of over $ 10 billion, its importance to this industry becomes even clearer.
Qiao Wang, recently a former Messari manager and analyst in the field said the following::
“3 companies that, if something catastrophic happened to them today, would cause a tsunami in these markets: Silvergate, Crypto Banking; Tether, reserve currency of crypto; and Genesis, the main liquidity hub for crypto loans. "
The market cap may only be around 4-5% of the total crypto market. However, USDT accounts for a large part of the volume and value in the chain, and more and more exchanges and other service providers are taking it over.
Related Reading: Uber & Robinhood Angel Investor: 99% of Altcoin projects are rubbish
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Crypto "Reserve Currency," Tether (USDT) Hits $10 Billion Market Capitalization