Quick summary:
- Tether’s daily trade volume has eclipsed Bitcoin’s.
- Similarly, Tether’s 7-day average transfer value has flippened BTC’s.
- USDT’s market cap has now hit $13 Billion hinting that Tether could eventually edge out Ethereum
This year, the stablecoin of Tether (USDT) has continually broken records. To begin with, in mid-July, Tether’s market capitalization hit the $10 Billion mark. In the process, USDT briefly edged out XRP from the number 3 spot on Coinmarketcap. Furthermore, this year saw many analysts predict that USDT’s daily transaction volume would eventually exceed Bitcoins.
Tether’s Daily Trade Volume Eclipses Bitcoin’s
Checking Coinmarketcap once again, it can be observed that Tether’s daily trade volume has achieved the feat of eclipsing Bitcoin’s. In the last 24-hours, a total of $35.89 Billion in Tether has been traded in comparison to Bitcoin’s $21.59 Billion. The screenshot below provides a visual cue of the situation.
USDT’s 7-Day Average Transfer of Value Flippens Bitcoin’s
According to the team at Unfolded, Tether’s 7-day average adjusted transfer of value has also flippened Bitcoin’s. The team made public the observation two days ago via the following tweet.
After months of rapid growth, Tether’s 7-day average adjusted transfer value has finally flipped Bitcoin’s@coinmetrics https://t.co/RDh0ZiS6HA pic.twitter.com/LxV49p2xUP
— unfolded. (@cryptounfolded) August 25, 2020
DeFi Propel USDT To New Heights
The observation of USDT flippening Bitcoin’s 7-day average transfer of value was further elaborated by the team at Coinmetrics as being due to DeFi.
…Tether continues to take more and more of the market share of on-chain transfers. Stablecoins are increasingly being used in popular DeFi applications like Uniswap and Curve, both of which likely played a role in Tether’s recent surge.
Tether’s Market Cap Hits $13 Billion
The demand for USDT due to DeFi has led to the parent company of Tether, continuing to mint the stablecoin. A quick glance at the Tether balance sheet reveals that the company has a total of $13.179 Billion in digital assets.
What Next for USDT?
January 2020 found Tether’s market capitalization at approximately $4 Billion. That number now stands at $13 Billion. This means that on average, $1.125 Billion in USDT has been issued on a monthly basis.
Such steady growth also means that Tether could eventually edge out Ethereum from the number 2 spot in terms of market capitalization. Ethereum’s market cap currently stands at $44.247 Billion. Therefore, and in a perfect hypothetical scenario, Tether could claim the number 2 spot in 27 months.