According to Tether’s transparency page, the total market cap of USDT has reached $ 51 billion, a major milestone for the most popular stablecoin in the crypto market. It has been the most valuable stablecoin by market cap for quite some time.
The stablecoin’s market cap has risen by $ 10 billion in the past few months, which could point to a market cap of $ 100 billion by the end of the year if the trend continues.
Paolo Ardoino, Tether’s Chief Technology Officer, referred to the event by noting that this is “an incredibly important milestone as Tether’s success is a blueprint for a central bank digital currency (CBDC) and banking system of the future . “
The stablecoin’s continued growth comes at a time when the entire cryptocurrency ecosystem has seen steady growth with a new influx of institutional and private investors.
These investors want to capitalize on the industry’s growing legitimacy, which has been bolstered by notable milestones such as Coinbase’s listing on the NASDAQ.
Tether has announced it will launch “Tether Week,” an event that will celebrate the milestone by discussing the coin’s history and plans for the future
Tron’s USDT requirement exceeds Ethereum’s
Another major milestone was achieved by Tether in the past few days when the Tron supply finally surpassed Ethereum, which originally had the only supply of the stablecoin.
With the congestion and high gas prices that Ethereum has seen since the DeFi boom of 2020, Tron has become an increasingly popular alternative for USDT users looking for a cheaper, faster alternative, as Tron has significantly lower fees compared to Tron ether offered for transactions in his network.
At the time of writing, there is a total of $ 25.9 billion floating on the Tron network while there is $ 24.4 billion floating on the Ethereum. Other networks with USDT circulation are Algorand, Omni, EOS, Liquid, SLP, and Solana.
Ardoino also referred to this event through tweeting: “The recent high transaction fees for #Ethereum have caused more #tether to flow onto #Tron. In the end, nobody wants to pay $ 20 to send $ 100. EVM-compatible blockchains make swaps almost seamless. “
USDT is growing in popularity with users looking to use cryptocurrency to pay for goods and services in a manner similar to fiat, as well as in heaven against the volatility of the crypto market that has made fees a priority for most of them.
Tether supporters remain unimpressed in view of the criticism of the stablecoin
Since its launch in 2014, Tether has been criticized by skeptics who disbelieve the company’s claims about a 1: 1 reserve against the US dollar. That criticism only got worse when the company was sued and signed a $ 18.5 deal with the New York Attorney General in early February.
While Tether and Bitfinex, who were also involved, decided to settle down, neither of them accepted wrongdoing but agreed to report on the assets backing the stablecoin by May 19, 2021. This litigation also resulted in neither Tether nor Bitfinex being able to operate in New York.
In response to the event, Tether released an audit from Moore Cayman in March showing that the company has sufficient assets to support the stablecoin’s market cap on February 28. This did not stop the stablecoin trade.
The review wasn’t enough to stop criticism of Tether, but it did allow the stablecoin to attract more investors to continue its incredible growth and hit the milestone it is now celebrating. However, all eyes are on the disclosure of reports requiring the company to submit to the New York government by May 19.