US Dollar-backed stablecoin Tether (USDT) has surpassing $15bln in total market captilization.
The stablecoin hit the milestone on 17 September, driven by the booming Decentralized Finance space. The post was shared on Twitter and received fairly mixed reactions, given the stablecoin’s somewhat checkered past.
This means that Tether’s market cap increased by $3bln in just over a month, after the stablecoin celebrated surpassing the $12bln milestone on August 14.
2020 has been a big year
2020 may well be remembered as the year of COVID-19 but it has been fairly fortuitous for the cryptocurrency space. The overall crypto markets shook off the dust that had settled over the past two years and the value of Bitcoin and Ethereum has steadily risen.
As previously mentioned, the DeFi sector has captured the minds and tokens of many crypto holders as it seemingly reimagines and redefines how people go about lending, borrowing and swapping cryptocurrency through decentralized platforms.
Tether has also enjoyed a successful year as the overall market capitalization of the stablecoin has increased nearly fourfold from around $4bln in January 2020 to over $15bln in September.
As recently reported by Cointelegraph, the use of Tether has boomed alongside the DeFi sector and the stablecoin has exceeded daily transfer values of Bitcoin and even mainstream payment service provider PayPal – according to data and a report from Coinmetrics.
Tether has also been heavily linked and influenced by the success of the DeFi movement given that nearly two-thirds of the active USDT supply is based in ERC20-minted Tether tokens handled by the Ethereum blockchain.
The Tether website’s transparency page gives an overview of the various balances of Tether tokens on the various blockchains that they are issued on. Over $10bln worth of Tether is in circulation on the Ethereum blockchain.