Victor Ugochukwu · Dec 14, 2020 . 5min read
Stablecoin Tether grew twenty folds between last bull run and now
In just three years, Tether has multiplied its market valuation by almost two thousand percent between the bull run of 2017 and the bullish market of today.
By Victor Ugochukwu · Dec 4, 2020 . 5min read
Stablecoin minting company Tether in just three years has multiplied its market valuation by almost two thousand percent between the bull run of 2017 and the bullish market of today.
Sourcing data from Coinmarketcap, Tether’s current market cap is $19.5 billion. Comparing it with December 2017, almost exactly the same time Bitcoin hit its previous all-time high and the peak of the bull run, Tether market cap was barely $814 million.
Tether’s progression from inception to becoming the clear stablecoin market leader comes with a “tethered” with history. For context, in December 2017 when Bitcoin hit its all-time high at around $19,666, some groups accused Tether of a lot of things. The striking of the allegations was that Tether minted USDT to manipulate the market to inflate bitcoin price. Fast-forward to 2020; the same year Tether has grown five-folds. The stablecoin started the year with a $4 billion market cap and now almost $20 billion. A practically unstoppable demand as a medium of exchange and alternative to the dollar keeps fuelling this adoption.
Beyond the bull run, experts are predicting a bigger role for stablecoins, more impetus for Tether.
Experts are predicting that stablecoin adoption will grow even further in the coming years. As an essential component of the cryptocurrency market, stablecoins solve the volatility “feature”. While early critics of Bitcoin slammed the digital gold and other cryptos as highly volatile, cryptocurrency enthusiasts see differently. They are always quick to point out that the jive in prices is a feature and not a bug.
Tether and a few other stablecoins like USDC and Dai played a significant role in the DeFi boom this year. Integrated across several protocols, DeFi enthusiasts are able to farm yields by using their stablecoins which was usually not commonplace before.
USDC is moving pretty fast and has just recently partnered with Visa to offer its 60 million merchants stablecoins. However, Tether’s market share hovers above $19.4 billion out the $25.5 billion stablecoins markets. USDC controls $2.96 billion of the market. USDT still remains the most interoperable stablecoin minted across seven blockchain networks.
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