Tether is a stablecoin, which pegged to U.S dollar. At the time of writing, it’s the 4th strongest cryptocurrency ranked by CoinMarketCap. Tether is growing fast these days. The USDT’s market cap increased by 1 billion in only nine days. In fact, the Tether’s market cap is creating a record.
The market cap of USDT surged in recent weeks
Many believes that the reason is the Bitcoin price, which surged significantly for the past week. In fact, Bitcoin was going to set an all-time high record.
The CTO of Bitfinex and Tether, Paolo Ardoino, stated that the Tether’s supply increased by 1 billion in just 9 days. He mentioned that on his twitter account on Thursday. He said that the recent surge was the second-fastest expansion in USDT’s history. USDT could set a record on Sept. 4, 2020, in just almost 8 days by increasing the supply by 1 billion.
The statistics from CoinMarketCap show that USDT’s market cap increased almost 4 times since the start of 2020. Now, there are around 19 billion USDT in circulating at price of $1.00.
Tether’s Market Cap Is Creating A Record; Tether has the 4th highest market cap of any cryptocurrency
It was 2019, that Bloomberg claimed that Tether’s USDT is not totally pegged to the dollar. But, 74% of the circulating supply backed in short-term securities and cash.
Tether is managing by the same group, which is running Bitfinex. In fact, Bitfinex is one of the largest cryptocurrency exchanges in the world. as a result, some believe that the Bitfinex and Tether manipulated the bull market in 2017. However, there is no clear evidence due to the decentralized nature of the cryptocurrency market.
Earlier this year, legal experts stated that the scope of market manipulation in an asset will be difficult to establish. In fact, it’s impossible for Tether or other cryptocurrencies such as Bitcoin. Meanwhile, the Tether stayed the dominant stablecoin in the market.