With a market rise, the market cap of Tether stablecoin also jumped high as it has reached close to $19 billion. Based on the provided data, Tether’s market capitalization has gone up by $1 billion in just nine days.
Per CoinMarketCap’s market information, the market capitalization of the largest stablecoin is standing at $18.983 Billion. In the last 9 days, the figure jumped from $18 billion to $19 billion due to bullish sentiments in the cryptocurrency markets.
Rapid Growth in 2020
Since January 2020, the funding rate in Tether is continuously increasing as it acts as a perfect bridge between cryptocurrency and fiat currency. In his tweet, Paolo Ardoino, Tether’s CTO, mentions the growth history of the stablecoins with a timeline. Based on his shared timeline, the total market cap of Tether jumped from $18 billion to $19 billion after the addition of one billion over a timeframe of nine days.
If we compare stablecoins’ growth with other cryptocurrencies, the formers are behind. XRP has again taken the third spot from Tether on CoinMarketCap after Bitcoin and Ethereum. The stablecoin standing at fourth number will have to gain an addition of only $5.6 billion to regain the third spot. With a current rate, USDT will overturn XRP in the next fifty days.
Similarly, Tether could also exceed Ethereum, the second-largest coin by market volume, if it continues to gain $1 billion in 9 days. In October 2020, the prominent news agency Bloomberg reported that the demand of USDT will jump which may increase its market cap many folds as a result.
“Expect Bitcoin #1, Tether #2 in 2021 If Trends Remain the Same. Indicating demand for a digital version of gold (Bitcoin) and a crypto-asset like the dollar, if current trends prevail, the market cap of Tether may surpass Ethereum next year,” said analysts at Bloomberg.
Tether is assisting whales in the manipulation of whales which use it to leave the crypto markets immediately after taking profit as a result of selling. When Bitcoin price moves up, the market cap of Tether jumps and vice versa. As the value of the top’s digital asset goes up, the altcoins follow it and also record a great performance. For instance, XRP is exchanging hands at $0.5 after making an increase of 17.52% over the last 24-hours. While it has performed extraordinary over the last seven days as it is up 68.42%.