Tether (USDT) reached a new market cap of over $ 20 billion.
The USDT is now the fourth largest crypto in terms of market capitalization.
A year ago, the market cap of the USDT was less than $ 4 billion
The USDT is now the fourth largest crypto by market cap. The news was announced in a tweet from the company.
At the time of this writing, Tether had a market cap of just over $ 20.03 billion. That’s a drop of about $ 10 million from its peak, according to CoinMarketCap .
Tether has just surpassed a $20B market capitalization!
This fantastic milestone once again confirms that Tether maintains its number one spot as the most liquid, stable and reliable currency!
Stablecoin at full speed
Tether’s market capitalization has grown throughout the year. The pace of this increase is also accelerating. It took almost six months, from mid-December of last year to mid-May of this year, to double its capitalization, from around $ 4 billion to over $ 8 billion.
The next jump, to over $ 13 billion, came in early September. Tether has seen about half of its surge come in the past four months.
A DeFi-nitive interest in Tether
Much of the increase in Tether’s market capitalization is likely due to the interest in decentralized finance (DeFi). When it hit $ 15 billion in mid-September, BeInCrypto indicated that DeFi projects were behind much of the rise.
Aave, Compound and Solana were highlighted as the main drivers of interest in USDT. Users tend to use stablecoins such as Tether in DeFi projects due to the lack of volatility.
It can also recover misdirected funds under certain circumstances. So when the DeFi market grows, the need for USDT increases accordingly.
According to DeFi Pulse, as of mid-August, the total stranded value (TVL) in DeFi projects stood at nearly $ 6.3 billion. Currently , the same indicator stands at $ 15.82 billion.
There are a few stones in the path of Tether’s growth, however. In August, Tether showed courage by returning a million dollars to a user.
The user accidentally transferred the amount, but the company was able to blacklist the addresses to which the tokens were sent and fix the issue. What some hailed as a wonderful act has also taken a menacing turn.
Members of the crypto community who oppose the checks and balances saw this move as a problem. From their perspective, there’s nothing to stop a government from forcing Tether to do the same against its enemies.
The government is characterized differently in Tether’s other potential threat. The ongoing case in New York state over the company’s lack of financial disclosure has cast a palpable veil over sentiment. The lack of disclosure itself is also of concern.
Despite the disclosure and control issues, Tether’s market capitalization continues to rise. Next stop, $ 25 billion?