Tether’s Supply and Market Cap Enters a Plateau Phase
With respect to market capitalization, Tether (USDT) continues to hold on to the number three spot with a market cap of $62.92 Billion. Tether’s market cap is roughly $20 Billion ahead of both Binance Coin and Cardano at $44.8 Billion and $42 Billion respectively.
To note is that the market cap of Tether (USDT) has more or less entered a plateau phase in late May as seen in the following chart courtesy of Coingecko.com.
From the chart, it can be observed that Tether’s market cap has more or else stayed the same since around mid-May when Bitcoin and several other digital assets, experienced new all-time high values. This, in turn, translates to a drop in demand for Tether by traders using USDT as a fiat onramp to buy Bitcoin, Ethereum and other digital assets.
To note is that Tether’s market cap has experienced similar plateau phases after the 2017 and 2019 bull markets. Therefore, if its market cap remains the same or starts to drop, it would confirm that Bitcoin and the crypto markets have entered a correction phase that will abate once USDT’s market cap starts to increase again.