There is an ongoing bank crisis in the financial world that has affected almost every industry. The crypto market has been affected too but Tether (USDT) has emerged as the surprise winner of this crisis.
The abrupt collapse of the Silicon Valley Bank has prompted regulators to make changes to solve the issues with the fallout. This is the second-biggest bank failure in the history of the United States which has also affected the crypto market.
Tether has come out as one of the biggest winners of this otherwise tough situation. Find out more about how they became the winner here.
Tether is capitalising on other stablecoins’ decline
The crypto market has experienced some turmoil which has helped Tether become the top stablecoin to increase its value atop the rankings. Tether’s market cap rose by 10% to $73 billion in 2023 which is a far cry from what USD Coin has experienced. This bodes well for USDT when used in the
USD Coin is Tether’s chief rival which means that the latter is happy with the development because the former fell by more than 11% resulting in their cap going down to $39 billion. On the other hand, Binance USD has fallen by almost half in value to just over $8 billion.
The broken peg between USD Coin and the United States Dollar was significant because people do not believe in a stablecoin when it loses its peg to one of the most powerful currencies in the world. This has led to more people moving to Tether because they know that it is the most popular stablecoin in the world and is linked to the US Dollar.
Traders value the longevity of Tether
In 2014, Reeve Collins, Craig Sellars, and Brock Pierce came up with the concept of Tether. It was meant to be pegged to the US Dollar and its stability has paid off through the years. A stablecoin must be pegged to a strong currency because the value is stable and can also be the crypto version of the money.
The longevity that Tether has accrued has been a big change for the crypto market because the stablecoin is living up to its billing. This is important for the long-term future of the crypto market because normal cryptocurrencies like Bitcoin and Litecoin are still at the top but stablecoins are helping people know more about this market.
Tether’s market share continues to rise
USDT surpassed 54% market share in March 2023. This is mostly due to the competition going down which has led to Tether becoming more established as the top dog in the stablecoin space.
These stablecoins have become the backbone of the industry as the top dog of the market. They are not only benefiting from the strengths of the crypto market but they are also becoming more stable with their use across many industries including crypto gambling.
This should be a good look for Tether investors because the crypto coin is getting stronger while more people are becoming more aware of its strengths. With this huge change for Tether, it can continue in the long-term future given its position as the world’s top stablecoin.