Tether [USDT], the top-stablecoin in the cryptocurrency market, saw its daily transaction volume reach an all-time high. A recent report by the cryptocurrency and blockchain-centric analytics site, CoinMetrics, attested the same.
According to the analysis, the daily transaction volume of Tether reached an all-time high of 38,327 transactions on 30 March. This feat highlighted the importance of the stablecoin market, as investors are increasingly using USDT as insurance against volatility, in their cryptocurrency portfolio.
Despite falling to the ninth spot on the coin ladder, Tether saw its market cap hold firm above the $2 billion mark. Recently, the coin’s market cap even surged to touch the elusive $2.1 billion mark.
Some proponents have questioned the stablecoin’s claim of being backed one-for-one by the US Dollar. A March update on the Tether website had stated that the stablecoin loans out its cash reserves to “third parties.”
However, the update did continued by stating,
“Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.”
The fractional banking controversy and alleged Bitcoin manipulation contributed to USDT’s share in the collective stablecoin market falling. In the past year, with the introduction of stablecoins like Coinbase and Circle’s USDCoin [USDC], Paxos Standard [PAX], DAI, TrueUSD [TUSD] and the Gemini Dollar [GUSD], the market share has been more distributed.
USDT held about 75 percent of the market, while USDC had 9 percent of the market share, at press time. They were followed by TUSDT, PAX, and DAI accounting for 7 percent, 4 percent, and 3 percent respectively.
A major reason for USDC taking almost one-tenth of the stablecoin market was Coinbase Pro. The American cryptocurrency exchange’s advanced trading platform made USDC the only way for users to transact fiat to crypto for no fees, leading to its rising adoption.
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