Victor Ugochukwu · Oct 22, 2020 . 5min read
Tether Stablecoin Market Cap grows to $14B
Data from Coinmarket Cap shows that the Tether Stablecoin started the year with $4.1B market cap and is now $14.18B in valuation.
By Victor Ugochukwu · Sep 7, 2020 . 5min read
Barely six weeks after Tether crossed the $10B market cap, it has added yet another $4B growing by 40%.
The stablecoin has seen exponential growth and adoption in 2020 with an even more promising outlook for it. Data from Coinmaket shows the stablecoin started the year with $4.1B market cap and is now $14.18B in valuation. Hence within eight months, the Tether has grown by over $10B in market cap.
For contexts, the overall stablecoins industry is now worth about $17.8B with a few dominant players. Asides Tether which mints USDT stablecoin, USCD by Circle, Dai by Maker and TUSD are among the dominant players. Tether controls about 80% in stablecoin industry total market cap.
Even more, data from Santiment shows stablecoins transfer volume was $65.8B, increasing by over 88% within the last seven days. Tether eclipses the rest stablecoins within this period with more than $63.5B in transfer volume.
Stablecoins has had a run-in 2020 with some predicting it could surpass $1T within the next five years. With a 40% and 48% growth within the first two quarters of 2020 respectively, recent increase suggests Q3 could surpass 50%.
For instance, in our earlier report in June, value transferred using stablecoins surpassed Bitcoin transactions for the first time ever. Since stablecoins are digitized dollars, the growth prospect is enormous, especially when you check how digitized products have always faired before their new state. State authorities are already experimenting and making plans to launch their CBDCs which are largely stablecoins. However, these are technically not cryptocurrencies. They, however, show innovations in the crypto sphere are sparking off deep-rooted revolutions in other far-away and tightly controlled financial sectors.
Tether looks to maintain its edge in market cap by adopting Layer 2 solutions.
Tether is not looking to relinquish its position as the market leader. It keeps exploring solutions to address its growing demands. One of such is Layer 2 scaling solutions. It recently added support for Omisego and has also started exploring ZK- Rollups, another Layer 2 solution.
Asides Layer 2, Tether is presently minted on five different blockchains. The stablecoin is available on Ethereum, Tron, EOS, Liquid and Algorand.
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Komal Joshi · Oct 22, 2020 . 5min read