Tether capitalization hits new high

The continuous growth of the most widely used stablecoin, Tether (USDT), has pushed its overall marketcapitalization above the $ 10 billion mark. On a monthly basis, the growth rate is even more impressive as it has doubled since March 2020.

USDT now has a combined market supply of $ 10.07 billion, thanks to the recent issue of 120 million tokens. At the same time, most of the 6 billion coins are placed on the Ethereum blockchain.

Whether Tether has a direct impact on the price of bitcoin and other volatile digital assets is one of the most discussed topics in the community.While arguments often emerge to support differing opinions, a recent study concluded that stablecoin issuancesdo not artificially increase prices, despite the fact that more than 60% of bitcoin transactions are in USDT.

Tether began to actively publish in March thisyears, causing huge jumps in market capitalization, which is a direct result of the amount of USDT in circulation, since the price of a stablecoin is always $ 1.

In May, Tether's market capitalization surpassed Ripple, with the stablecoin displacing XRP from third place in the ranking of the largest cryptocurrencies.

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