The popular stablecoin Tether (USDT) has reached the fourth position in the market on January 28. This happened due to the fact that most of the top 20 digital assets are dropping between 3.87% and 12.15%.
Tether was able to overtake EOS around 15:00 GMT. Currently, USDT has a market capitalization of $2.04 billion while EOS dropped down to $2.02 billion. It is also worth mentioning that the number of circulating USDT has also been increasing since November 2018, this helping the digital asset have a larger market capitalization.
Back in October, Tether was affected by a massive sell-off that affected the currency’s peg with the US dollar. Each coin dropped down to $0.9 in some exchanges. EOS has fallen 7.19% in the last 24 hours, and each EOS coin can be purchased for $2.22.
Although Tether has been growing in the market, it is highly unlikely that it would surpass Ethereum (ETH) as the third largest cryptocurrency. Ethereum has a market capitalization of $11 billion. As soon as EOS, Bitcoin Cash (BCH) and Litecoin (LTC) start growing again, Tether might not be able to sustain itself as the fourth largest digital asset in the market.
The Tether Organization mints more USD when dollars are deposited on a 1:1 ratio on their accounts. In this way, Tether can slightly increase its market capitalization since it is a pegged coin and its price fluctuates very little close to $1.
David Thomas, the Director of GLobalBlock, perfectly explained this situation that the market experienced:
“The last 24 hours has presented a down day across the market other than Tether and TrueUSD and it is not so much that their market caps have increased but more that everyone else has fallen back.”
Just a year ago, Tether was in the 37th position in the market with a market cap of $1.47 billion.
Now with just a few millions more became the 4th largest digital asset. Nevertheless, as mentioned before, it will be very difficult for it to surpass Ethereum. The last time Ethereum had a market capitalization of $2 billion was back in March 2017.