An item is not a store of value unless it has a network so powerful that it’s in nobody’s interest to not believe in the claim.
The opposite of this description fits Tether for being a better store of value. Leading stablecoin and the fourth-largest digital asset according to market capitalization, Tether, aims to convert cash into cryptocurrency to pull it close to the values of various vital currencies.
During the March 12 price decline, dubbed “Black Thursday,” which saw the price of key assets falling to half its price. While other digital assets were declining rapidly, the total amount of Tether in supply was increasing significantly.
Since that period, Tether had never looked back but has witnessed considerable growth between that time and now.
It was recentlyannouncedthat Tethers market capitalization had grown way over $10 billion, which is two times its previous market cap when the year started.
Going by records, Tether has now set a new record by being the first Stablecoin to reach that milestone figure. As a result, the worth of economic value that was pushed up through Tether increased rapidly. Another critical aspect was Tether’s transaction daily, which has experienced a rapid rise to rival Bitcoin.
3 key elements instrumental to Tether’s rapid rise
Presently, Tether’s daily figure count shows a value not less than $33 billion with Bitcoin just a little above it in a 30-day window.
According to experts, three key elements have been instrumental to Tether’s rapid rise, with the first being investors choosing to hoard more of the digital asset indicated by a rush for the US dollar.
While the second seems to the popularity and the seeming success enjoyed, the third is that investors choose to use stablecoins to hold Bitcoin.
The total worth of the stablecoin market is a figure well above $10 billion following the massive adoption it has enjoyed in previous weeks. With Tether growing rapidly, many crypto enthusiasts have been hoping to figure out what it spells for Bitcoin.
According to a crypto influencer, he noted that Tether is now banking the digital assets market. Looking at it from a wider angle, some experts believe that Tether could upset Bitcoin to become the reserve currency of the digital assets market.
However, an important fact to note is that Tether has shown over time that it is a crucial element in the crypto space. The flagship cryptocurrency has seen its market stagnate in previous weeks, trading around the $10,000 to the $10,500 mark.
Presently, Bitcoin has seen its market break the resistance figure to rest on a little above $11,000. What Tether growth spells for Bitcoin
Presently, Tether has displaced Bitcoin to cement its stay at the top of the table when it comes to the most transacted currency in the public blockchain.
Bitcoin may soon be pushed to the side by Tether to become the most dominant digital assets on public blockchains. Even though Bitcoin is presently enjoying its upward trend in the market, USDT has witnessed a rise in user inflow in the past few months. Noting this increase, Tether might be well on its way to take Bitcoin’s spot.
Taking a cursory look at what Tether growth means for the Bitcoin market, an analyst posted on Twitter last month that the critical changes in Tethers market capitalization have been responsible for Bitcoins price surge over the years.
Going by history, we can associate the present Bitcoin boom to the swift increase in Tethers market capitalization.
Tether vs. Bitcoin: Which is a better store of value?
Another question that would be asked is which digital asset is a better store of value in the crypto market. Going by the words of a famous Bitcoin enthusiast, Willy Woo, Tether’s value is in correlation with the US dollar, he feels it stores value more than Bitcoin.
Looking critically at their market cap, Bitcoin is miles ahead of Tether in that aspect, so how could Tether be a better store of value that Bitcoin?
Woo explained that, based on some findings by crypto experts, it shows that if one dollar is spent on Bitcoin, it automatically adds 25 dollars to the digital assets market value.
If this theory is anything to go by, one can argue that Bitcoin’s market cap should be around $7 million. Presently, Bitcoin boasts of a market cap valuethat stands at $215 billion.
Woo noted that the fiat amplifier that emanates from the liquidation of assets was responsible for the difference between the real market cap and the value shown.
Even though Bitcoin has a very massive market cap compared to Tether, the important aspect is the trading volume. Tether boasts a trading volume that stands at around $33 billion compared to Bitcoins trading volume, which is $24 billion.