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Tether (USDT), the world’s largest stablecoin and the third-largest cryptocurrency by market cap, has confirmed its dominance in the cryptocurrency market and is now on the verge of a major milestone. Recent data shows huge influx of money The cryptocurrency industry has seen massive investment inflows over the past week, with over $1 billion invested in stablecoins.
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Naturally, most of this inflow went to Tether (USDT), pushing its market cap close to an all-time high of $120 billion.
Tether (USDT) Leads the Stablecoin Market
Stablecoins are one of the innovative applications of blockchain technology. Their use cases have grown over the years from trading other cryptocurrencies to increasing use in lending platforms and payments for goods and services. The stablecoin market has seen tremendous growth since the beginning of the year. This growth has been largely driven by increased investment in the cryptocurrency industry since the beginning of the year, which has contributed to their adoption.
according to Data from IntoTheBlockThe total market cap of the stablecoin market stood at $122 billion in October 2023. However, the rally since then has pushed the total market cap to over $169 billion in September 2024, representing a 38.5% increase. Furthermore, the data shows that inflows increased by 1.71% over the past month.
in The leader of the stablecoin market is Tether.which has the largest share of market cap. As of this writing, Tether’s market cap is just under the $120 billion mark, with a steady stream of new capital pouring into the stablecoin. In particular, Tether’s market cap currently stands at $119 billion, representing a 70.4% share among all stablecoins. USDC, the second-largest stablecoin, comes in at a current market cap of $35.88 billion.
This growth is largely due to USDT’s ability to maintain its value pegged to the US dollar over the years, making it an attractive option for traders seeking stability amid market turmoil.
What’s next for Tether and stablecoins?
The influx of capital into the stablecoin space highlights the growing interest in stable digital assets, especially as concerns about inflation and the weakening of fiat currencies in developing countries grow. At this rate, Tether’s dominance among stablecoins is expected to continue to grow.
Just last week, the Tether Treasury coin was released. Coined $1 billion USDT on the Ethereum blockchain and another $100 million on the Tron blockchain.
Interestingly, other stablecoins with a lower market cap have also benefited from this surge in stablecoin interest. Among these is First Digital USD (FDUSD), which has seen its market cap increase by 47% in the past 30 days and now stands at $2.94 billion.
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Adding to this momentum is Ripple, the company behind XRP. Ripple recently announced its plans to enter the stablecoin space with its Ripple USD (RUSD) stablecoin, with plans to connect global corporations and financial institutions. Given Ripple’s established presence in the global banking sector, RUSD is expected to see significant growth after its launch.
Featured image by Pexels, chart by TradingView