Alongside more popular and the leading crypto coins like BTC or ETH, there are other stablecoins like Tether which are steadily rising to make their mark. USDT (Tether) supply, according to the last sources, has reached an all-time high of $25 billion as its circulating supply in the crypto market.
This suggests that USDT now accounts for approximately 75% of the entire stablecoin supply in the market. The value of Tether has been rising noteworthily for the past couple of weeks. But recent news suggests that this growth is not the end. Tether is on track for more highs even after record-breaking highs as marked on January 26th.
The CTO of USDT, Paolo Ardoino, mentioned in a statement that the latest milestone that USDT has surpassed is a reflection of the increasing popularity and trust in this stablecoin. This seems to be a plausible explanation alongside the unprecedented growth of this digital asset.
Unprecedented Surge In Tether’s Supply Sparked By The Pandemic
Tether value rose from $21.07 to $25 Billion in less than a month in January, 2021. This monthly issuance of 3.8 Billion is topped by one other issuance that occurred in September 2020. During that time, USDT’s value was up by a difference of 55 Billion within the span of a month. However, the total supply stood at $10 billion during that time.
The initial surge in Tether’s supply happened after the world was hit by the coronavirus pandemic. As the economy started becoming more unstable, there was a steady shift to these alternate currencies. USDT’s initial supply was marked at $4.1 Billion. This gradually started rising during March 2020 after the market crashed due to financial strains.
Recent sources also suggest the DeFi markets are pumping up after these massive inflows in USDT and ETH and so on. Analysts are also looking into the intricate connection between these Decentralized finance markets and the rise of these stablecoins.