Tether Stablecoin (USDT) Inserts Itself into Top 5 Coin Market Cap Despite the Crypto Winter
Tether seems to be slowly gaining on other cryptocurrencies in the top five list, despite its continually falling market capitalization trends.
Though the market is still in ruins following the recent crash in price of major assets, the digital cryptocurrency buyers of the world have invariably turned their attention to stablecoins as a viable way to sustain wealth in the evolving markets.
The stablecoin markets have gone through their own metamorphosis. Following revelations by some that funds within the Tether (USDT) market may have been misappropriated by members of leadership, faith in the coin had hit an all-time-low.
Rather than discouraging the market from being interested in any kind of stablecoin, the result was the proliferation and expansion in popularity of several other coins, all vying for a spot towards the top of the pyramid in the competitive stablecoin market.
Coincidentally, the rise in popularity of stablecoins relative to other cryptocurrencies is by no means an indicator that the industry is doing objectively well. Instead, experts warn that Tether continues to lose stock—over $700 million worth of assets in the past three months alone—and other stablecoins are doing only marginally better.
But even despite the gloom of the market, Tether and its competitors are still faring far better than other currencies in these trying times.
The Great Crypto Winter
The crypto community has been embroiled in a major downturn—and this should come as no surprise to those following the markets. But the causes for the massive exodus from the market and subsequent death spirals is a topic up for both discussion and fierce debate.
Truthfully, no one person or agency can pinpoint what exactly may be causing this increasingly bearish and dark market. But one statistical trend continues to resurface in these trying times; stablecoins are on the rise.
Perhaps market participants look to these coins as a way to remain within the market and experience its successes without such significant a financial risk as other coins might offer. Perhaps others are becoming more interested in the concept of stablecoin integration into existing exchange frameworks. Whatever the cause, stablecoins like Tether seem to be unique resilient during this dark cryptocurrency winter.
Breaking The Top Five
Tether made the crypto news this week when it finally jumped above Bitcoin Cash (BCH) in the overall marker capitalization rankings. The margin between the two digital assets is not significant, and it is still likely that they will be fighting toe-to-toe in the coming weeks for the five-spot, neither market coming particularly close to jumping powerhouse Stellar in the rankings.
Though it definitely means bad things for Bitcoin Cash, which has lost a whopping over 75% of its previous value in the past few months. But more importantly, it poses an interesting question to researchers and market participants alike: why has Tether retained so much where others have continued to lose?
The question is more complicated than some might like to think. One cause may be that Tether charges such a significant amount for its investors to pull out funds on the native network to convert to the United States Dollar. Whatever the reason, Tether’s success seems to be a light spot in a world of dark for the crypto community.