On Saturday, 18 April 2020, Tether (USDT), the world’s largest stablecoin, reinforced its position in the cryptocurrency ecosystem after its total market capitalization reached a new milestone. The USDT market capitalization reached $7 billion.
This massive boost in Tether’s already heavy presence in the stablecoins market comes at a period when the market is stricken by both fear and panic, with COVID-19 pandemic disrupting the world order.
As USDT market cap hits $7 billion, no other stablecoin is closing on that milestone. The chart below illustrates the dominance of Tether in the stablecoins market.
USDT market cap milestone triggered by COVID-19?
Despite Tether’s massive development in the last quarter, other USD-pegged stablecoins have also experienced enormous growth over the previous few months due to the widespread coronavirus pandemic.
Despite the massive growth in the USDT market in 2020, its percentage rise in market share was dwarfed by Binance’s stablecoin, BUSD, which recorded an immense 709.77% growth. Nevertheless, despite the stellar increase in percentage growth, USDT continues to dominate the stablecoins market.
Moreover, we should note that other stablecoins such as USDC have also seen significant growth in their market share. With the U.S. dollar still keeping a grip on its status as an international reserve currency, familiarity with it at times of global uncertainty and crisis should be an excellent option for all investors. Other notable options include familiarity with other safe-haven assets.
As Tether grows BTC struggles to break resistance
Despite USDT market cap growth, the price of bitcoin is still hanging in between the $6,000 to $7,500 region. Although USDT tokens are authorized, they are still not issued, and this may be the reason for BTC’s sulky price action movement.
Currently, the price of BTC is $7,214.19 after failing to break from the critical resistance. With bitcoin halving fast approaching, we hope the price of BTC will rise, giving the cryptocurrency market a much-needed boost. The majority of experts, such as Mike Novogratz, believe it is the right time for investors to purchase bitcoin as the halving event and the growth in adoption will drive the coins price high.