The most popular dollar stablecoin digital asset in the market, Tether (USDT) was able to surpass a market capitalization of $5 billion. This is the largest market valuation ever reached by a stablecoin that is tethered to the value of the U.S. dollar. In this way, Tether was able to become the fourth largest digital asset in the market.
Tether Reaches Market Cap Record
According to data provided by Tether, they have surpassed the market capitalization of $5 billion. Due to the current market conditions, Tether was able to surpass Bitcoin Cash (BCH) as the fourth largest cryptocurrency in the world.
If demand for the asset continues growing and XRP falls even further, Tether could become the third most valuable virtual currency in the world for the first time in history. At the time of writing, XRP has a valuation of $6.63 billion and a price per coin of $0.151.
Tether can be used by traders to hedge against volatility in the market and in periods in which virtual currencies fall and users need to keep their positions in USD or fiat currency value. Tether is the largest stablecoin in the market despite the fact that there are other stablecoins already operating in the space.
It is worth taking into account that aggregators in the market still didn’t reflect the current increase of USDT minted in the last few days. CoinMarketCap continues to display the same old valuation without the recently $500 million minted.
Other stablecoins in the market include USD Coin (USDC), DAI, or Binance USD (BUSD), among others. These virtual currencies have been created in order to offer users the possibility to protect their funds against massive sell-offs and to have fast and secure cryptocurrencies with the same value as fiat currencies.
It is worth mentioning that Tether has been criticized many times in the past and that it was involved in a few controversies regarding the funds it had to back the USDT in circulation. For example, it was many times discussed whether Tether has all the necessary funds stored in bank accounts to back the USDT in circulations.
A few days ago, the cryptocurrency market experienced a massive sell-off in which Bitcoin dropped to almost $3,800 for a brief period of time. Meanwhile, other digital assets fell even further and the entire market capitalization of virtual currencies reached $150 billion.