Usage of USDT, Ethereum-based dollar, reaches new highs

English May 27, 2020

On Monday, the total number of daily transactions involving Tether, the Ethereum-based currency that is currently the most used stablecoin among cryptocurrencies, reached a new historic record.

According to Etherscan, 208,107 transactions, amounting to US $ 1.2 billion, were carried out in a 24-hour period.

By default, each USDT must be backed by a $ 1 real held by Tether Limited, the company behind stablecoin. However, in the past, Tether revealed that its holdings were only 74% backed and that each USDT is now backed by its reserves, which consist of cash and various investments. Reservations have never been audited.

According to Etherscan, historical USDT trading volumes began to rise sharply in September 2019, reaching 188,621 daily transactions at the peak of the month - worth approximately $ 620 million in USDT.

If this trend continues, Tether may well surpass its 2019 records, when stablecoin moved approximately $ 212 billion in value over the course of the year.
Recently, USDT also surpassed Ripple's XRP among the top ten cryptocurrencies by market capitalization, ranking third with a market value of approximately $ 8.8 billion, according to CoinMarketCap.

However, the difference between the two is still relatively small by industry standards - around $ 200 million - so the XRP will still be able to regain its place among the "big three" in the near future. This if he can solve his inflation problems.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.