The leading US dollar-backed stablecoin Tether (USDT) has achieved a new milestone as its market cap hit a $17 billion mark for the first time. This milestone means there is approximately the same amount ($17 billion) of real US dollars resting in storage that users have swapped for Tether (USDT).
Tether has been fabricating massive growth in 2020, USDT market cap has jumped almost four times, surging from around $4 billion to $15 billion.
Tether is also known as the most dominant stablecoin. It captures approximately 85% of the total market share. Based on data from Messari, USDT witnessed a striking increase of more than $5 billion in market cap during the period of the last few months.
Tether Main Drivers for the Bitcoin Price Rally
Tether (USDT) is witnessing an extensive inrush in its market cap, which pushed the recent Bitcoin price rally. Tether, the firm, minted new $10 million Tethers onto the crypto market. Analysts consider that this results in Bitcoin’s price to jump from $15,501 to above $15,860.
According to Ki Young-Ju, CEO of crypto data platform CryptoQuant, minting more USDT shows that the crypto sphere is heating up. He pointed out:
“Again, the $BTC price soared right after the number of stable coin deposits increased.”
As reported earlier, Tether knockout XRP to become the third-largest cryptocurrency in terms of market cap. In June 2020, Bloomberg published a report that provides a crypto market insight; it assumes Tether to surpass Ethereum in the crypto market place and become the second-largest asset in terms of market cap.