Tether is Now the Most Popular Cryptocurrency
Recent figures reveal the world’s most popular cryptocurrency, and it may come as a surprise to some people. While Bitcoin still dominates the headlines, it is Tether that is the most widely-used digital coin.
What Do the Figures Say?
It can be difficult to obtain clear, accurate trading volumes from the cryptocurrency markets. However, the CoinMarketCap site has carried out a study to see which tokens are more frequently traded.
The results prove that Tether (USDT) has a higher daily and monthly trading volume than the rest. In fact, Tether passed Bitcoin (BTC) in this respect for the first time in April of this year. Since August, it has consistently been ahead of Bitcoin.
The daily trading volume of Tether is around $21 billion. This puts it about 18% ahead of Bitcoin and clearly the most popular cryptocurrency in terms of trading.
Why Is Tether the Most Popular Cryptocurrency?
Tether is a stablecoin. This means that it is backed by reserves, as a way of lowering the risk of price fluctuation. In the case, it is US dollars that are used to peg the price. However, Tether has run into issues with regulators and has often been caught up in controversy and legal issues.
Despite this, the idea of stablecoins has proved to be hugely popular. This has led to the introduction of other coins like this, such as GlobCoin and Carbon. The Facebook Libra project is also based on the concept of backing the currency with different types of fiat money.
The market capitalisation of Tether is some 30 times lower than that of Bitcoin. Yet, the ease of use and lack of price fluctuations have made it an extremely popular choice for moving money. Since the value should, theoretically, always be $1, it is about moving money around rather than making a speculative investment.
Tether has been shown to be extremely popular in Asia, particularly in China. It is also worth noting the theory that a lot of people don’t realise that they are using a cryptocurrency. Some analysts suggest that people think they are sending US dollars rather than USDT.
What Does This Mean for the Future?
The idea of stablecoins continues to gain strength. Tether looks as though it is here to stay but it seems possible that Libra could challenge its position as the most popular cryptocurrency in the world.
Of course, Bitcoin and other potentially volatile currencies also remain a tempting option for investors.