Market capitalisation
Tether (USDT) is the world’s largest and most popular stablecoin, designed to provide a secure digital asset for global markets. As of early 2021, Tether is ranked as the third-largest cryptocurrency by market capitalisation, with over $21 billion in circulation. This makes it one of the most influential players in the rapidly developing crypto market.
Tether was first released in 2014, but its rapid growth has been driven primarily by its unique design as a “stablecoin”. Unlike other cryptocurrencies such as Bitcoin or Ethereum, USDT is pegged 1:1 against the US dollar, meaning that each USDT token is worth one US dollar. This provides investors with a convenient way to store value without worrying about drastic market fluctuations or price volatility – making it one of the most attractive assets for traders seeking stability and reliability in their portfolios.
In addition to providing stability, Tether has also gained traction as a tool for payment settlement between exchanges. The convenience and speed of USDT transactions make it an ideal solution for sending funds quickly between wallets or trading platforms – particularly if those platforms don’t support traditional fiat currencies. As such, it is increasingly being used as a bridge currency for buying and selling altcoins on exchanges worldwide.
Despite its popularity and growing acceptance among traders, there have been some controversies surrounding Tether’s market capitalisation throughout its history. In late 2019, rumours began circulating that Tether was being used as a form of money laundering or even fraud – leading to several investigations into the project by government authorities such as the United States Commodity Futures Trading Commission (CFTC). To address these concerns, Tether underwent an independent audit which verified that all issued tokens were backed 1:1 with US dollars held in reserve accounts.
Despite these issues and continuing regulatory challenges, Tether remains one of the most important players in the crypto space thanks to its widespread use among traders seeking a secure and fluid alternative to fiat currencies like the US dollar. Its immense market capitalisation speaks volumes about its success thus far – proving that even during times of uncertainty in the crypto world, people still need reliable digital assets they can trust. With demand continuing to grow around stablecoins like Tether, there’s no telling how much more successful USDT could become in years to come.