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Over the years since its inception, USDT has provided unique services that most digital assets fall short of.
The Tether Treasury has generated almost half a billion new USDT tokens in the past two days according to whale alert as observed by news outlet Cointelegraph.
The new Tether batch coincided with major cryptocurrency events, whereby American payment giant PayPal Holdings Inc (NASDAQ: PYPL) entered the crypto sphere triggering Bitcoin and most altcoins to rally. According to Whale alert, over 185 million of the minted USDT were distributed amongst the crypto exchanges.
Notably, leading crypto exchange Binance received 126.9 million USDT, approximately 70%. The whale alert also noted two transactions of 150 million and 300 million USDT tokens were minted on Oct 20 and Oct 21 respectively. Hereby putting its circulating supply at 15,897,187,815 USDT with the total supply at 16,325,579,134 USDT.
Notably, its market capitalization stood at $15,914,402,617 at the time of writing. Its 24-hour trading volume stood at $56,796,842,107 according to metrics provided by CoinMarketCap. Tether (USDT) market dominance in regards to total crypto market capitalization stands at 4.08%, third after Bitcoin with 60% and Ethereum with 11.4%.
Cointelegraph further noted that 15 transactions totaling to 185.9 million USDT have been highlighted in addresses belonging to Bitfinex and Huobi crypto exchanges. Notably, the Tether Treasury wallet now holds approximately 280 million USDT.
Tether (USDT) in 2020
Over the years since its inception, USDT has provided unique services that most digital assets fall short of. Notably, Tether, a Hong Kong-based company guarantees investors the value of USDT by pegging it to the United States dollar.
According to Tether, whenever it issues new USDT tokens, it allocates the same amount of USD to its reserves, thus ensuring that USDT is fully backed by cash and cash equivalents. This unique property makes USDT a significant project in the crypto industry that is marred with the volatility of up to 10-20% in a day. Hereby acting as a stablecoin and a favorable store of value that is interoperable with digital assets.
Tether (USDT) operates as a second-layer token in existing blockchain technology including that of Bitcoin, Ethereum, Bitcoin Cash, EOS, Algorand, and TRON. Over time, USDT demand has been associated with Bitcoin high volatility as traders and investors use the former as a contingent plan against falling volatility.
Notably, in the past, there have been controversies regarding Tether’s U.S. dollar reserves especially since it’s a private company. As a result, Tether (USDT) has been more volatile than the dollar itself falling as low as $0.899490.