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- The Stablecoin market sees heavy growth this year, reaching great heights.
- Amidst the global pandemic, the digital assets market has been suffering huge fluctuations, While stablecoins have managed to hold their position in the market.
The Stablecoin market sees heavy growth this year, reaching great heights. According to the report, the total market cap of the stablecoin market has reached $11 billion.
Amidst the global pandemic, the digital assets market has been suffering huge fluctuations. There had been better days for the cryptocurrency market. However, stablecoins have managed to hold their position in the market. In the month of January, it was somewhat above $5 billion. In February it crossed the $7 billion mark. Further, in May it crossed the $10 billion mark.
Stablecoins as the name suggests is a stable form of cryptocurrency whose values are often pegged to a fiat currency. Talking about the potential of the stablecoins, they can boost the adoption of cryptocurrencies. Moreover, the stablecoin markets may widely benefit the remittance market for people who work overseas and send money to their families. The stablecoins that are mainly contributing to the digital assets market are USDT, USDC, PAX, TUSD, DAI, GUSD, BUSD, and HUSD.
The Tremendous Growth of Tether
In the second week of February, 82% of the total stable coin market trade was controlled by Tether (USDT). In March, when the stablecoin market crossed the 7 billion dollar market, USDT contributed 87% of the trade volume. Reports say that Tether stablecoin minted 1.6 Billion tokens in the month of April and 480 million tokens, already in the first week of May.
As of now, Tether’s assets’ current valuation is at $9.88 billion, the stablecoinindex reports say. Which means that Tether USDT has successfully become the third-largest cryptocurrency in the world after displacing XRP to the 4th position, for the first time in history. However, Tether’s growth comes as insecurity for Ether. It is highly probable that in the coming future Tether may surpass Ether to become the second-largest cryptocurrency.
But as USDT continues to mint more and more tokens daily, crypto experts are thinking whether this may be a reason to worry. However, according to a study in April, the rate of minting of stablecoins doesn’t inflate or affect the cryptocurrency market in any way.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
