NEW CHAIN FOR 1000X RETURNS!!! CHARLES HOSKINSON BREAKS NEWS AND 4 ALTCOIN GEMS PICKED FOR YOU!!!
Tether’s market cap reaches $ 11 billion
Tether Market Capitalization Grows 136% YTD.
Demand for stablecoins is growing amid interest in hedging the risks of market volatility.
The development of custodian services will further fuel demand for stablecoins.
Continuing Strong Demand for Stablecoins and Record USDT Inflows Fueled Unprecedented Growth in Tether’s Market Capitalization.
The demand for stablecoins continues to break its own records, and against this background, the market capitalization of Tether (USDT) – the most popular stablecoin – has grown 136% since the beginning of 2020, exceeding the $ 11 billion mark and reaching $ 11.18 billion..
The USDT-BTC pair is one of the most liquid cryptocurrency pairs and is also considered the cheapest way to buy Bitcoin (BTC). Let us also remind that the treasury of the Tether project has long been criticized by members of the crypto community for uncontrolled indomitable emissions of new coins..
What are the consequences of such uncontrolled dumping of coins into the market? Join the discussion in our Telegram channel – and you will find out everything!
Recently, there has been an unprecedented surge of interest in stablecoins in the crypto space. Earlier, the editorial staff of BeInCrypto already said that from February to June 2020 supply of USD-backed stablecoins increased by 94%.
For more information on what stablecoins are and how they work, read our review..
Over the past year, the total volume of stablecoins has nearly doubled to about 12 billion, according to Coin Metrics. In comparison, this indicator took almost five whole years to reach the 6 billion mark..
According to analysts, one of the drivers of such dynamics was the coronavirus pandemic, which provoked a collapse in stock markets and a surge in volatility in March. This prompted investors to look for some ways to protect against this volatility and uncertainty in the global markets. Digital assets alternative to traditional markets, but backed by US dollars, could seem to many an attractive option.
Let us also remind that experts recently noticed a reversal of the almost half-year trend. The volume of bitcoins entering crypto-exchanges began to exceed the rate of their outflow from trading floors. According to some, this may be due to the ongoing boom in the DeFi application segment, which is driving the growth of demand for stablecoins. In this case, members of the crypto community are now actively returning bitcoins to exchanges to exchange them for other coins..
Institutionals will be happy
Some fear that, in fact, the growth in Tether’s capitalization is weakly associated with general trends in the stablecoin segment, and uncontrolled USDT emissions require proper audit. They doubt that all issued stablecoins are really 100% backed by real US dollars..
However, stablecoins as a whole still have bright prospects thanks to such a recent trend as the development of the custody services industry in the field of digital assets. According to some, this will be one of the decisive factors in attracting traditionally cautious institutional investors to the crypto market..
More and more regulators, including the United States and Hong Kong, are starting to offer regulatory support to crypto custody services. This can increase the influx of institutions into the industry. According to a November Binance study, institutional clients of the exchange show the highest interest in stablecoins. Thus, 96% of institutions on Binance ended up holding at least one stablecoin, and USDT became the most popular coin..
All information, contained on our website, published on the principles of good faith and objectivity, and for informational purposes only. The reader bears himself full responsibility for any actions, committed by him on the basis of information, obtained from our website.