Tether’s average daily transaction value just surpassed the one of Bitcoin as the stablecoin sector was seeing some huge growth over the past year. This led to the transaction value of USDT flipping the one of Bitcoin as we are reading more in the upcoming Tether news.
The growth of the fragment of the crypto market saw it rooted in the global flight to the US dollar which is considered a “safe-haven” currency as well as the ongoing DeFi boom. This boosted the massive inflows into the monetary base of the stablecoin market which is worth more than $12 billion. Despite the fact that there are many competitors and a lot of controversies around Tether, the company still has dominance over its peers becoming the first stabelcoin to build a market cap of more than $10 billion.
The first few months of 2020 were quite slow for stablecoins as the investors were keen on getting their hands on the upside seen by Bitcoin. Once the benchmark cryptocurrency started flashing signs of weakness after the $10,500 rejection but rattled the investors chose stablecoins. The growth of the tokens saw that it was perpetrated by fears of another economic decline and these fears reached a boiling point when the stock market along with the crypto market crashed together with the decline leading Bitcoin to the lows of $3800.
The growth of the DeFi ecosystem continued fears due to global economic turmoil which fueled the continued rise of stablecoins. Ryan Watkins, the researcher at Messari explained that the growth of the tokens saw in Q1 and Q2 which allowed their aggregated market cap to surpass the $12 billion:
“In Q1 2020 the stablecoin monetary base grew $2.4 billion to just over $8 billion. In Q2 2020 another $3.8 billion was added onto the base, bringing it to over $12 billion.”
According to the latest data, the aggregated stablecoin ecosystem has a market cap of $11.55 billion. The growth of Tether saw in recent weeks that could allow it to surpass Bitcoin as the leading cryptocurrency on the public blockchain. While looking at the two digital assets’ daily transaction value rolling 30-day period, Tether’s Average Daily Transaction is sitting below the $1.75 billion while Bitcoin is a hair below. Watkins spoke about it:
“USDT may soon surpass Bitcoin as the dominant currency on public blockchains.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]