It has been a good week for Tether Limited and its USDT coin. The company saw its stable coin reach a market cap valuation of 3 billion US dollars.
The good news did not stop there for USDT. Tether now has $2.6 billion in circulation on the Omni blockchain and close to half a billion on Ethereum with tokenized euros standing at $40 million. This all added up to the over $3 billion in total tokenized fiat.
According to Etherscan, the total assets over liabilities was $38 million, and the authorized, but not issued, USDT increased by $59 million. This is a massive surge of demand for the leading stablecoin.
$100 million in 70 days
The record breaking figures came about after a coin market capitalization increase of over $100 million in just 70 days. This meteoric rise is impressive and started forming in April, rising over 50% since then.
The market capitalization blows away all its competitors in the stablecoin field. For instance, USD Coin (USDC) has a market capitalization of $361 million; TrueUSD (TUSD) has a $242 million market cap and Paxos Standard (PAX) has a market capitalization of $176 million.
Clearly, Tether is by far the leading stablecoin, although this tag has not been without huge amounts of controversy that has plagued the brand and coin in recent times.
Tether has recently been affected by a scandal after it became clear that the funds that it had to back the supply of the USDT were not as much as Tether Ltd said is being held in its reserves. Tether’s main selling point is its 1:1 ratio of USDT to USD. Tether’s General counsel came out and admitted that USDT is just 74% backed by USD.
Additionally, the company was embroiled in a scandal alongside Bitfinex, a crypto exchange. Court documents show reserves that Tether Ltd had were used to buy Bitcoin (BTC). There was also a suspected $850 million missing from the crypto exchange with Tether reserves being used to cover the loss.