The market capitalization of Tether (USDT), the world’s most liquid stablecoin, surpassed $40 bln on Wednesday, reflecting the rapid growth in cryptocurrency investment over the past year. In terms of the stablecoin rating, Tether is four times larger than the USD Coin (USDC), which has a market cap of around $10 bln. According to Messari, USDT’s dominance is currently around 67%.
Tether’s market capitalization has grown tenfold over the past 12 months, reflecting the significant growth in the crypto market. The total crypto market capitalization exceeded $1 trln for the first time in January, and reached $1.8 trln earlier this month.
USDT is considered the main stablecoin because its supply reflects the market demand for cryptocurrencies. However, in the past, the stablecoin has come under scrutiny over claims that it is loosely pegged to the US dollar. The stablecoin’s relationship with Bitfinex, a leading crypto exchange, has also made USDT a subject of close scrutiny.
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