Tether (USDT) is on the verge of joining the exclusive league of cryptocurrencies valued at tens of billions, a distinction currently held by Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Binance Coin (BNB).
With a market capitalization of $96 billion, USDT is poised to become the first stablecoin to reach this significant milestone.
Bitcoin crossed this threshold in October 2017, followed closely by Ethereum and Ripple, though XRP briefly dipped below. BNB entered the club during the subsequent cycle, reaching nearly $110 billion in market cap in November 2021. However, only Bitcoin and Ethereum have maintained their positions.
While Cardano (ADA), Dogecoin (DOGE), and Solana (SOL) have approached this mark, USDT’s unique position stems from its stablecoin nature.
Unlike traditional cryptocurrencies, its market cap is tied to its circulating supply and responds to demand from key players in the ecosystem. Tether actively manages the issuance and lending of USDT, adjusting the supply based on market demand.
USDT‘s daily trading volume of around $45 billion solidifies its prominence in the crypto space, with its market cap reaching $100 billion marking a noteworthy milestone, positioning it as the slowest crypto project to achieve this feat to date.
The stablecoin’s value is anchored by its one-to-one peg to the U.S. dollar, primarily supported by assets in Tether’s reserves, emphasizing its importance in the crypto market.
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