Leading Stablecoin Tether Reaches Record Market Value
Tether (USDT) stablecoin continued its expansion and growth trend in 2020, shortly exceeding $ 10 billion in terms of market value on June 30.
Leading Stablecoin Tether Reaches Record Market Value.
The token was criticized for being excessively issued by the cryptocurrency community, but the team; he said it was a response to high demand.Currently, the market value is around $ 9.2 billion. Dollar supported stablecoin continues to dominate the field and challenges some of the most important tokens. Even those who ranked third in market value according to recently by the xrp’y third-place itself was seated .
The only stablecoin Tether with a market value of more than $ 1 billion has a long history; however, the coin supply has increased by 70% since the beginning of the year. Stablecoins play an important role in the market, where they are basically used as a counter against volatility in the market. In particular, on 12 March, also known as “Black Thursday”, where the market was experiencing a sharp collapse; it turned out that some cryptocurrencies lost almost half their value.In those times, investors are turning to the stablecoin market, where Tether controls 85%. The second most used stablecoin USD Coin (USDC) has a market value of about $ 930 million at the time of writing.
Stablecoins and DeFi synergy
The rise of Tether, more precisely, stablecoins in general; Since the beginning of the year, hundreds of millions of dollars have coincided with the rise of the DeFi market.
Currently, the Compound Finance platform shows that $ 84 million USDT has been supplied. DeFi protocols convinced investors to invest their funds and get higher returns than the average, which encouraged investments in stablecoin assets.
Despite criticism, the use of Tether is becoming widespread
It is undeniable that Tether has grown over the years, even if it has faced various criticisms.
The worst criticism is that there is not enough evidence that stablecoin is backed by dollar reserves. Tether published an audit result in response to these investigations; however, the audit was carried out by a law firm, unlike an accounting firm. Therefore, their answers were not sufficient for some of the community.
Bloomberg also issued a report stating that Tether had seen bank statements that proved to be sufficient to support the token supply, but doubts continued among investors .Tether was also set on fire for frequent token removal. Having issued 200 million USDT on June 2, Tether has published many editions since the beginning of April.