2021-3-4 19:58 |
The total amount of Tether (USDT) in circulation has soared this week, as demand for cryptocurrencies surges amidst all-time highs all-round.
Better Weather, More TetherThe circulating of Tether USD (USDT) has a valuation of just under $36 billion, after soaring over 100% this year alone. The meteoric rise in USDT’s supply closely tracks the price of Bitcoin (BTC) over the same period.
On Jan. 1, the total value of USDT circulating in the space was just under $18 billion, less than half of the current value.
However, as Bitcoin hit a new all-time high, breaking over the $50,000 mark, USDT began seeing huge demand, often diverging positively from USD’s value.
Historically, increased demand for cryptocurrencies sees Tether mint more and more USDT, causing an inflation of the circulating supply. Essentially, this is what the market is seeing this year.
Moreover, optimism in the cryptocurrency market is at the highest ever, translating into more demand for stablecoins to buy cryptocurrencies.
USDT $36bln market cap, +100% this year pic.twitter.com/meJBAEHiZP
— skew (@skewdotcom) March 3, 2021 Stablecoins Are The New ETFsIndeed, the stablecoin market as a whole sees immense growth in both valuation and the number of available options.
USDcoin’s USDC also saw a similar pattern of growth to USDT. Having started the year with less than $2 billion worth of USDC in circulation, the stablecoin now has a valuation of just under $9 billion.
Its market capitalization makes it the twelfth largest cryptocurrency by that metric, just above Uniswap (UNI) and Dogecoin (DOGE). Moreover, USDC recently announced its platform’s expansion to Solana (SOL) to increase its usability.
Accordingly, new stablecoin platforms like Venus (XVS) are also seeing rapid surges in the number of users on their platforms. XVS’s native governance token rose more than ten-fold this year alone.
#yeswecan – from one former President to another @BarackObama #Freedom. Will it be available on $SRM next? $SOL $USDC https://t.co/nyH761icOx
— sbf_universe (@SbfUniverse) March 3, 2021 Is The Market Bullish?With the increase of stablecoin supply, like Tether, there is now extra liquidity in the cryptocurrency market and will be used to purchase cryptocurrencies.
This adds to the already bulging demand the market is seeing as a result of all-time highs all-round.
There is also a serious cryptocurrency supply issue on exchanges as miners choose to ‘hodl’ instead of sell. Moreover, institutions like Grayscale and MicroStrategy are gobbling up whatever supply is left.
Combine these two factors, and the cryptocurrency market may only be heading in one clear direction; to the moon.
The post Tether USD (USDT) Market Capitalization Doubles This Year appeared first on BeInCrypto.
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