Controversial Stablecoin Tether is taking advantage of the current market conditions where stablecoins have come out on top to post a volume of over $6 Billion with barely anyone taking note of this incredible feat.
Since the markets collapsed so spectacularly earlier this month, stablecoins have found their importance that much more as they are not affected by such volatility. Tether, the original and biggest coin by far, is leading the way with recently more minted coins, but there is also growing competition from the likes of Coinbase’s USDC and others.
The new mark for the volume of USDT now sits at $6.2 billion, a first in the coin’s history, and a market that puts it way out in front of any other stablecoin vying for a position in a volatile market.
However, this figure includes coins that have been issued by Tether but have not yet been distributed to investors. They are issued according to the expected demand. For this reason, the total market cap of the stablecoin according to CoinMarketCap is $4.6B.
Crypto Money printing?
This boosted the stablecoin market in a time where the cryptocurrency market was under a lot of pressure and has been likened to the Federal Reserve in the US printing more money to try and ease the woes of the market.
It is an interesting comparison as the Fed has been widely criticised for this stimulus pack cage which may boost the economy, but will, in the long run, devalue the dollar and weaken it. In the cryptocurrency market, however, this addition of funds seems to have helped the markets stabilize somewhat, but without doing much to damage Bitcoin.
In fact, this form of crypto money printing has further highlighted the potential of cryptocurrencies — especially considering the notion of a digital dollar was thrown around in this time of Covid-19 concerns.
A relevant cryptocurrency
The sudden drop in Bitcoin’s price and its association with traditional markets has once again pushed its designation towards being a store of value, or at least an investable asset. On the other hand, the success of stablecoins in this market collapse has shown their value as a functioning digital currency.
The outcome of the Covid-19 collapse may well be that a true split in the cryptocurrency market is found which gives it two different, and functional, sides.