- Tether has seen a major increase in its average daily transfer volume in the last 7 days.
- This growth allowed it to exceed both Bitcoin and PayPal transfers.
- The project saw a supply increase of 225% in 2020, attributing it to ‘uncertain and challenging times.’
Tether (USDT) has recently seen a major surge in its average daily transfer value. In fact, the growth has exceeded $3.55 billion as of August 20th, which officially put it ahead of Bitcoin, but also PayPal itself.
Tether outperforms Bitcoin and PayPal
The new information comes from a recent report published by CoinMetrics, which revealed a major surge of Tether’s 7-day average adjusted transfer value. The new ATH is approximately 20% higher than that of Bitcoin, which is at around $2.94 billion.
While rather impressive, the growth of the coin’s average daily transfer value doesn’t come as a surprise. USDT has been seeing strong growth for at least half a year now. However, it is still impressive to see it go past Bitcoin, and become the dominant project for on-chain transactions.
Tether has seen particularly large growth as the DeFi sector started expanding.
As mentioned, USDT transactions also exceeded those of PayPal, which saw similar numbers in its Q2 of this year as Bitcoin — $2.94 billion.
It is worth noting that PayPal transactions are under heavy surveillance, while Tether still offers anonymous payments. However, USDT has also grown in terms of supply, as it currently has more than $13 billion, based on its transparency report.
Uncertain times led people to find more secure payment methods
The interesting part is that the coin’s supply increased by 225% in 2020 alone, and it continues to surge. In fact, Bitfinex’s executive, Paolo Ardoino, believes that the coin might hit $20 million before the year ends. He called 2020 ‘The year of Tether,’ although it has yet to be seen whether this prediction will come to pass.
Tether addressed its growth itself, attributing it to the state of the global economy, and using it as evidence that people are turning away from traditional payment methods.
Due to the virus pandemic, this is a highly uncertain and challenging period where people value security, utility, and viability of digital currencies, according to the company.