The popularity of Stablecoins has been growing rapidly and now there are more than $10 billion worth of stablecoins in circulation. The king of the stablecoins, Tether (USDT), now has a market cap of $8.8 billion, and appears to be poised to surpass the Ripple (XRP) market cap of $8.9 billion. When this happens, Tether (USDT) will move up to #3 on the CoinMarketCap rankings.

Tether (USDT) has seen accelerating adoption during the past year and a half, with its market cap rising from $1.9 billion to $4.1 billion during 2019, and in 2020 the Tether (USDT) market cap has more than doubled.

The reason that Tether (USDT) is becoming so popular is that it is far easier to use than actual fiat USD. Basically, withdrawing and depositing fiat from crypto exchanges and platforms takes significant amounts of time. On the other hand, Tether (USDT) can be withdrawn and deposited instantly, and sent to and from almost all crypto exchanges and platforms.

In other words, Tether (USDT) makes crypto trading more liquid, and more people are keeping their fiat balances in Tether (USDT) rather than withdrawing to a bank.

Likewise, other stablecoins are surging in popularity as well. USD Coin (USDC) has a market cap of $700 million, Paxos Standard (PAX) has a market cap of $250 million, True USD (TUSD) has a market cap of $140 million, and Dai has a market cap of $110 million.

Collectively, these four stablecoins plus Tether (USDT) have a market cap in excess of $10 billion.

It appears the stablecoin sector will only continue to proliferate, especially if the highly anticipated post-halvening rally occurs.