The leading stablecoin Tether (USDT) surpassed the $10 billion in its market capitalization on the first days of July.
As announced by the crypto data and research firm Messari, USDT now joins Bitcoin (BTC) and Ether (ETH) club as the third cryptocurrency with a monetary base of 11 figures.
The $10 billion marks distinguish Tether (USDT) among other stablecoins and signals it is still in power, Messari says.
Tether (USDT) which is the most popular stablecoins backed by a US dollar and is trading at around $1 at the time of writing, has grown impressively within the past year, with market cap being below $4 billion last June. The stablecoin currently controls around 85% of the stablecoin market.
In the meantime, other crypto data aggregator CoinMarketCap still reports Tether (USDT) market capitalization to be $9.2 million however with the impressive $21 billion trading volume of 24 hours.
The reasons behind the rise of Tether market cap mainly come as a result of the constantly growing supply of USDT stablecoins. The majority of them circulate on the Ethereum network, which is the leading platform for the decentralized applications, that have increased significantly within the year and generate giant transaction volumes.
Moreover, the whole DeFi sector is currently booming with the increased market cap by $1 billion in only a few months this year. The Ethereum-based crypto lending platform Compound alone increased by nearly $815 million in days since its token launch and became a top DeFi project. The DeFi lending projects like Compound offer higher than average returns for the investors, which in turn encourages investments in stablecoins.
Competitors grow, but still far behind
Entering the club of 11 figure cap, the most popular stablecoin left its closest competitor USDC Coin far in the #18 position with a market capitalization of over $927 million. Despite a considerable gap the USDC, the stablecoin created by Coinbase and Circle, has almost doubled its monetary base since March.
At the same time the third largest stablecoin Paxos Standard Token (PAX) has not experienced any significant changes since April. The stablecoin’s market cap stagnates at around $245 million, keeping it in the #39 position among the largest cryptocurrencies, according to CoinMarketCap.
Meanwhile, Binance USD (BUSD), a stablecoin launched by another cryptocurrency exchange last September, has increased its market capitalization dramatically since March from $17.6 million up to the current amount of $166 million worth of coins. The coin is mainly traded on Binance exchange and currently is ranking as the #51 largest cryptocurrency.