Tether Sets Record in USDT Market Cap Following High Bitcoin Price Volatility
The number of circulating Tether Coins (USDT) now exceeds 6 billion. Tether, and most stablecoins, have been coining continually new coins to cope with growing demand from traders in times of high volatility and uncertainty in the cryptocurrency market.
The past month was especially turbulent in terms of volatility, to say the least. Most cryptocurrencies were down, mainly due to violent price actions in mid-March. The market is collapsed by up to 50% in less than 24 hours, pressured by external events largely related to the COVID-19 outbreak.
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In such unpredictable times, most traders turned to the least volatile assets in the field of cryptocurrency: stablecoins. Consequently, this led to serious changes in terms of market capitalizations. While Bitcoin and most altcoins were declining, the market capitalization of stablecoins soared. Tether, for example, rose to 4th place among the top 100 coins and is still holding its own.
Trading volumes on most exchanges remained high throughout the month. To keep up with the demand, Tether continued to mint significant quantities. According to data from a CoinMarketCap, the circulating supply of USDT at the time of this writing is in excess of 6.2 billion. Just for reference, just two weeks ago, there was 5.3 billion USDT On circulation. This represents a 15% growth since March 17.
It is also worth noting that there has been a massive increase in market capitalization from March 31 to April 1, as it increased by almost 1.500 billion USDT.
