Tether has made a record of reaching a market cap of $58 billion. This makes USDT the third most valuable digital currency in the world.
Tether (USDT) is the largest stablecoin globally, and on Friday, it made a huge milestone after it surpassed the market cap of Binance. The stablecoin is now the third-largest cryptocurrency after Bitcoin and Ethereum.
The details of Tether’s growth were published in a report on CoinMarketCap, which showed that Tether had surged by around $500 million on May 21. USD Coin (USDC) remains the second most valuable stablecoin after its market cap touched $14 billion on the same day.
Stablecoin Supply Ratio
In its weekly metric, Glassnode, a blockchain and crypto analytics firm, provided insights into stablecoins. The metrics show that the stablecoin supply ratio (SSR) had declined to an all-time low.
In a tweet, Glassnode noted that the
Stablecoin Supply Ratio hits an All-Time-Low of 8.54. This means the Bitcoin Market Cap is 8.54x larger than the global supply of stablecoins. ATL SSR values indicate that the purchasing power of crypto-native dollars is at a relative ATH. Demand for the top stablecoins Tether (USDT), USD Coin (USDC), and DAI pushed prices noticeably above the $1 peg in the month before the Coinbase listing. This may suggest there was distribution and strong demand for exit liquidity to ‘sell the news.
Large Tether and USDC Volumes
During the recent turmoil in the cryptocurrency market, large wallets have increased the trade volumes of Tether and other stablecoins during the week.
According to Whale Alert, a blockchain tracking and analytics platform, a large transaction of 58 million Tether was made where the tokens were transferred from a digital wallet to the Binance crypto exchange. On May 21, Tether coins worth around $20 million were taken from the Binance exchange and deposited in a crypto wallet.
USDC, the second-largest stablecoin, has also been recording large whales that are propelling the values of USDC. According to Whale Alert, around $50 million worth of USDC tokens was moved from FTX crypto exchange into an unidentified digital wallet on May 21.
Cryptocurrencies seem to have recovered slightly from last week’s crash. The overall cryptocurrencies market cap bow stands at around $1.75 trillion. This is significantly lowest from the ATH market cap of $2.6 trillion, recorded during the second week of this month. Stablecoins have been doing exceptionally well compared to altcoins, while Bitcoin has been the hardest hit during the crash.