Tether (USDT) adoption continues to rapidly rise, and the Tether (USDT) market cap has now broken through the $10 billion level for the first time and is actually already at $10.3 billion. Simultaneously, the total stablecoin market cap has risen to $12 billion.
As discussed in a previous article on Crypto.IQ, Tether (USDT) surpassed the market cap of Ripple (XRP) in the middle of May, making Tether (USDT) the #3 crypto on CoinMarketCap. Just a month and a half later the Tether (USDT) market cap is $1.4 billion higher than the Ripple (XRP) market cap, which is a margin of 18%, and it is expected that Tether’s (USDT) lead will only continue to grow.
In fact, there has been some speculation that Tether (USDT) could one day surpass the market cap of Ethereum (ETH) and become the #2 crypto. At this point Ethereum (ETH) has a market cap which is over $15 billion higher than Tether (USDT), so it will be a long time before that happens, but it is possible.
The reason for Tether’s (USDT) meteoric rise is stablecoins are becoming the standard for fiat in the crypto space. Regular fiat can take days to deposit and withdrawal, and comes with all sorts of problems due to the centralized banking system.
On the other hand, stablecoins can be instantly deposited and withdrawn, giving traders the speed and flexibility they need to maximize profits. And stablecoins are generally decentralized so they can’t be frozen, seized, or reversed.
The rise of stablecoins is likely to continue to accelerate, with Tether (USDT) leading the way.