Tether (USDT) remains the most popular stablecoin for cryptocurrency traders. What is interesting is the fact that, in terms of transaction volume, it even exceeds Bitcoin (BTC)!
USDT is a stablecoin with the highest market share
As it turns out, Tether remains the stablecoin with the highest market share, amounting to 83.44%. Interestingly, even though its coins (entirely fiat-supported) are referred to as "fiat off-ramps", their supply is decreasing.
And even though a great number of people expected Tether's imminent failure, its rate is good. It can be actually said that the worst thing that happened to USDT was the $0.94 fall. It occurred during the panic episode on the 1st of April, 2017.
In 2019, Tether increased its supply from 2 billion to around 4.108 billion coins. It is also worth adding that omni-layer coins have been moved to the Ethereum network, which, in turn, made them even cheaper and easier to transfer.
Tether is currently focused on many markets, facilitating arbitration, for instance. It is clearly visible that USDT has resisted the skeptical comments. It has not only managed to survive, but it also increased the liquidity of cryptocurrency markets.
Tether has more and more applications
The transition to new networks means that Tether may operate in a greater number of markets. An example is the transfer of 18.7% USDT coins to TRON company's blockchain.
One of the main advantages of this stablecoin is undoubtedly its range of applications as it is becoming wider and wider. For instance, NiceHash has recently started using USDT to carry out its internal transactions. Although Tether is not a coin showing immediate price pumps, it is worth noting that its activity still remains quite closely correlated with Bitcoin market moves.
It should also be mentioned about the accusations of manipulation thrown at Tether Inc. The company denied the allegations directed towards it, obviously.
Some sources report, however, that China is currently the most important place in which Tether is used. Why is it like that? This particular stablecoin may be a tool for transferring funds without any restrictions and/or censorship. China's nationals transfer millions of dollars in USDT every day in order to avoid strict capital control.
It should be noted here as well, that the country restricts the purchase of foreign currencies to 50,000 dollars a year. As a result of that, cryptocurrencies are becoming the traders' favorite method to bypass such regulations. And why do Chinese citizens use Tether and not Bitcoin? Well, due to the fact that USDT has no restrictions on the size of the transaction, and, according to many people, the exchange rate variability is also lower than in the case of BTC.