The fast-growing DeFi sector resulted in a massive emission of Tether in 2020 (last month only $ 3 billion) – which pushed its market capitalization to over 15 billion.
4 times the USDT
At the beginning of the year, only slightly more than USD 4 billion was in circulation. Today the market cap is $ 15 billion, or four times more. USDT’s driving force is DeFi as more and more liquidity pools rely on stablecoins. Recently, there has even been information that at the end of last month, the average daily value of Tether transfer exceeded the value of PayPal.
Tether has just surpassed a $ 15 billion market capitalization! 🎉
In only one month, Tether’s market cap has increased by more than $ 3 billion, maintaining its number one spot as the most liquid, stable and trusted currency! pic.twitter.com/MLOWkiIDvF
– Tether (@Tether_to) September 17, 2020
The infographic from Flipsidecrypto.com shows Tether’s movements between users and exchanges this month. Major centralized exchanges still account for the lion’s share of USDT trading. Binance and Bitfinex alone hold approximately $ 2 billion in USDT.
Which network is best for USDT?
According to the report Tether Transparency Report, the amount of UDST on the blockchain, Ethereum has grown to over $ 10 billion, or almost two-thirds of the total supply. Currently, there are approximately $ 4.2 billion in the TRON network and $ 1.3 billion on the Omni network.
Late last month, Tether moved a token swap from the Bitfinex exchange to Binance. The swap was triggered because the Binance exchange had a surplus of USD 1 billion based on Tron and wanted to convert it into the USDT equivalent of ERC-20.
Tomorrow Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 1B USDt.
Tether total supply will not change during this process.
Read more here: https://t.co/abfgnELSvi
– Tether (@Tether_to) September 14, 2020
On September 15, as the demand for Ethereum’s stablecoin is much greater than for other networks, Tether made another swap. However, due to high gas charges, USDT has to be placed on other chains as well. Over the past month, USDT has been made available on the OMG network and on the Solana blockchain.
Many in the community are calling for an audit to see if Tether actually has $ 15 billion of collateral in dollars. The truth may be revealed as part of the ongoing legal proceedings in the Tether case. Office of the Attorney General on September 8 folded a letter asking the company to disclose financial documents. The lawsuit concerns allegations that Bitfinex “lost” about $ 1 billion and used Tether’s reserves to cover up the case. Tether and Bitfinex said the lawsuit was unfounded.