Stablecoins have gained a lot of traction in the crypto market. Many of the stablecoins have slowly started climbing the ladder in the crypto ecosystem. The leader of the pack is Tether.
Tether has become an integral part of many exchanges across the globe. Initially, all coins had fiat and BTC pairs only. Nowadays, a majority of the new and old coins are paired with Tether (USDT), along with BTC, as the default trading pairs on several exchanges.
Due to legal compliances, trading of derivatives for cryptocurrencies paired with fiat on many exchanges is not possible. Many countries have prohibited derivatives with fiat pairs or do not have a clear regulation for margin and futures trading of cryptocurrencies paired with fiat. Due to this, USDT has started gaining a lot of popularity.
Binance Futures has all cryptocurrencies paired with Tether only. The daily volume of USDT is in billions of dollars on Binance alone. Many other world-leading exchanges like Okex, Huobi, Kucoin, and Bitfinex all have USDT paired futures and margin services and the volume of USDT pairs is extremely high.
Tether is owned by iFinex. iFinex also owns one of the biggest exchanges – Bitfinex. There were a lot of controversies involved around Tether and the collateral in dollars required to mint USDT. You can read about it in this article.
Which type of stablecoin is Tether?
There are 4 types of stablecoins. Tether is a fiat collateralized stablecoin so every Tether that is minted has to be backed by one USD. Some other examples of fiat collateralized stablecoins are USDC, TUSD, PAXOS, etc. USDT has the biggest share amongst all of its peers.
Blockchains Used for Issuing USDT
USDT is issued on multiple blockchains like ERC, OMNI, TRC, EOS, Liquid, SLP, and Algorand. $14.7 billion USDT have been issued on ERC, $9.3 billion on TRC, and $1.3 billion on OMNI. These three blockchains have the lion’s share in issuance of USDT. $40.2 million have been issued on EOS, $16.5 million on Liquid, $6.0 million on SLP, and $4.0 million on SLP.
The current market capital of Tether (USDT) is $25,324,077,986, and the trading volume for the past 24 hours was $71,893,836,699, which is higher than all of the other cryptocurrencies except Bitcoin. The next highest volume was of Ether, which was $36,847,452,588.
Join us on Telegram to receive free trading signals.
For more information on cryptocurrency, visit the Altcoin Buzz YouTube channel.