Tether Holdings Ltd.’s USDT token in circulation is now $100 billion, the first stablecoin to hit such a value.
The USDT, designed to maintain a one-to-one value with the US dollar, has become the inaugural stablecoin to attain such a monumental size.
According to data from CoinGecko, the value of USDT in circulation surged by over 9% since the beginning of the year, a surge buoyed by the escalating demand for Bitcoin.
Tether, revered as the world’s most-traded cryptocurrency, continues to redefine the dynamics of digital asset transactions.
On Monday, Tether momentarily surged to a circulation peak of $100.2 billion as confirmed by CoinGecko data, before retracting to approximately $99.6 billion.
However, representatives from Tether remained unavailable for immediate comment.
Stablecoins like USDT, pegged to other assets, provide a less volatile avenue for traders to navigate through the crypto market and store their wealth securely.
Tether’s reserves for its USDT stablecoin, which escalated to $97 billion in December, primarily consist of short-dated US Treasury bills, contributing to its robustness in the face of market fluctuations.
Despite its dominance, Tether has encountered scrutiny and controversy, primarily concerning transparency over its reserves and corporate structure.
Nonetheless, Tether’s exceptional growth underscores its pivotal role in shaping the crypto landscape, as it continues to spearhead innovations in the digital currency realm.