By
Bena Ilyas
April 22nd, 2024
Tether (USDT) has become the third-largest crypto in terms of its market capitalization that is said to reach $8.8 billion.
Tether (USDT) has become the third-largest cryptocurrency. This occurred as the Bitcoin halving event occurred seamlessly. Sources report large inflows of the world’s largest stablecoin into exchanges.
Tether (USDT) now has a market capitalization of about $8.8 billion. This places the Ethereum-based token as the second most capitalized altcoin after Ethereum (ETH).
As of the time of filing this report, Tether (USDT ) price was at 1.00 (0.03%).
This could mean many things. The inflow of USDT is always followed by a sharp rise in Bitcoin price. As always, the altcoins also follow. This information gives credence to the inverse relationship between Bitcoin (BTC) and Tether (USDT).
More Tether (USDT) Tokens Are Flowing into the Cryptocurrency Space
As more USDT flows into the crypto-space, Bitcoin price prepares for a rally. Then a bullish phase occurs. When USDT flows back into wallets, the reverse occurs. A similar trend occurred in March this year when USDT values decreased significantly. Bitcoin prices dropped as well.
Experts within the crypto-space have already identified this trend. They are all set for a new bullish phase. The use of stablecoins by investors is a proof-of-concept that the digital currency concept can work. All it needs is the right technology.
Tether (USDT) is the biggest stablecoin at the moment in teh cryptocurrency world. It towers over all the others by all the numbers. This presents the big question of manipulation by investors.
Though, controversial, Tether provides the first and best form of reference for the Dollar at this time. This helps investors who want to have a way of transferring value digitally. The fluidity structure serves the best use-case scenarios.
This scenario may play out in other markets as well. Tether Limited the issuer of USDT has issued a gold-backed token XAUT. It has also issued USDT companions: the Chinese CNHT and EURT. This points to the fact that stablecoin tokens are coming into their own within the crypto-space.
As more stablecoins continue to emerge, we are sure to see variances in their use. While they aren’t meant to replace fiat currencies, they also bring forward the big question of Central Bank Digital Currencies (CBDC).
CBDCs could be threatened by other stablecoins. Projects such as USDT though have contributed to the ongoing conversation about CBDCs.
New Cryptocurrency Rally Is Expected to Come
In the next few days, we shall see if the trend will hold. As the COVID-19 crisis continues, the new rally in cryptocurrencies may be started by whales. New adopters will maintain the rally this time.
This is because of several unseen factors at play. A Lexington Law survey last year projected millenials in the United States to spend at least $1.4 trillion.
That may not happen because of the coronavirus pandemic. Millennials are putting their funds in cryptocurrencies in large numbers. Most of them will use stablecoins. USDT accounts for about 90% of the stablecoin space.
We may see more of USDT action this year.