2020 has seen a major Bitcoin rise with Bitcoin pushing $12,000 smoothly and aiming for $13,000 and up. But Bitcoin is not alone on this upward journey. Some of the stablecoins are now taking the limelight off of Bitcoin recently- this includes Tether.
Tether is the most popular and largest stablecoin. According to recent reports, Tether has minted over $500 million worth of new US Tether tokens or USDT tokens. The past 36 hours saw a major transaction of Tether. Approximately 185 million Tether tokens were in demand in exchanges and to multiple addresses around the nation.
PayPal To Use Cryptocurrencies For Transactions
The huge Tether demand doesn’t happen overnight for no good reason. A major development in the stock market has ignited this huge demand for Tether stablecoins. The rise of Tether and others in the cryptocurrency market almost coincides with PayPal’s huge announcement.
The virtual transactions giant announced recently that the company will also function using Bitcoins, Bitcoin Cash, Ethereum and Litecoin from the early months of the upcoming year. PayPal customers will be allowed to use these cryptocurrencies to shop at all the PayPal registered merchants. This is a huge deal as PayPal holds about 26 million shops and merchants on their registered network. This has the potential to change the face of cryptocurrencies like Bitcoin and Bitcoin cash and stablecoins like Tether drastically.
Tether’s move in the market is clear as about $150 million USDT was initially minted. But after the PayPal announcement, an additional $300 million USDT was minted the next day.
Tether Boom Good For Cryptocurrency Market
Stablecoins always have a positive influence on the cryptocurrency market. The growth of Tether is often linked to a price rally of major cryptocurrencies like Bitcoin. But in this case, the PayPal statement was a clear catalyst. But with the expected rise in Bitcoins in the upcoming year with regard to PayPal’s move, a strong stablecoin currency is the perfect balance that the cryptocurrency market needs, now more than ever.
During the market crash in March due to the Covid-19 pandemic crisis, stablecoin minters pushed value into the cryptocurrency market using pegged dollars. When Bitcoin’s price rallied to about $9000 during April 2020, more than 160 USDT tokens were minted by Tether to maintain balance in the market.
According to recent stats, Tether grabs the most-used cryptocurrency rank. At ties, the trading volume of Tether has even been higher than that of Bitcoin, even though Bitcoin enjoys a greater market cap in the cryptocurrency market. The year-to-date growth of Tether’s market cap is up by about 400% and currently stands at $15.9 billion.
In the volatile cryptocurrency market, stablecoins like Tether have helped sustain the ecosystem of digital cash.