What’s the World’s Most Widely Used Cryptocurrency? Hint: It's Not Bitcoin

Which cryptocurrency is the world's most widely used one?

It’s not Bitcoin, the leading cryptocurrency that accounts for about 70 percent of the entire crypto market’s value.

It’s Tether (USDT), the popular stablecoin that surpasses the flagship cryptocurrency in terms of daily and monthly trading volume. The fourth-largest cryptocurrency by market cap is less than 3 percent of BTC’s market value but exceeded Bitcoin’s volume for the first time in April.

Since early August, at about $21 billion per day, 18% higher than of bitcoin, as per CoinMarketCap, Tether is consistently surpassing BTC’s volume.

“If there is no Tether, we lose a massive amount of daily volume — around US$1 billion or more depending on the data source,”

Lex Sokolin, global financial technology co-head at ConsenSys, told Bloomberg.

“Some of the concerning potential patterns of trading in the market may start to fall away.”

A Popular Stablecoin

A USD pegged token that seeks to avoid price fluctuations is the most used stablecoin. Despite the entry of many competitors — such as TUSD, USDC, PAX, GUSD, and DAI — Tether’s maintains its dominance in the market.

Earlier this year, Coin Metrics said, Tether was used in 40% and 80% of all transactions on two of the world’s top crypto exchanges, Binance and Huobi.

In countries like China, where cryptocurrency exchanges are banned, Tether plays an integral role as people buy USDT over-the-counter and then trade it for BTC or other digital assets.

“For many people in Asia, they like the idea that it’s this offshore, opaque thing out of reach of the U.S. government,” said Jeremy Allaire, Circle CEO. “It’s a feature, not a problem.”

Not all exchanges have fiat on-ramp and use Tether as a substitute, as such, many people don’t even know they use Tether, said Thaddeus Dryja, a research scientist at the Massachusetts Institute of Technology.

“I don’t think people actually trust Tether — I think people use Tether without realizing that they are using it, and instead think they have actual dollars in a bank account somewhere,”

Dryja said.

A Great Idea in Theory But Risky in Practice

Tether is also the most controversial coin of the market that has been accused of being used to prop BTC’s price up and is being sued by the New York Attorney General for being involved in loaning USDT to investors and illegally trading in New York.

Tether is issued by Bitfienx and was recently revealed that instead of 100% reserves as has been previously said, it is only 74% backed by USD.

This disclosure was part of an ongoing investigation by the NYAG that accused the company of being involved in the loss of $850 million.

“By avoiding government powers, stablecoins place trust instead in the hands of big tech companies, who have mixed accountability,”

said John Griffin, a finance professor at the University of Texas at Austin who said half of BTC’s runup in 2017 was market manipulation using USDT.

“So while the idea is great in theory, in practice it is risky, open to abuse, and plagued by similar problems to traditional fiat currencies,”

he added.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,466FansLike
2,795FollowersFollow
4,234FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Will Emerge Stronger Out of the Ongoing Crisis: Congressman Tom Emmer

It is the fact that no one has centralized control over Bitcoin that makes it stand out in comparison to fiat currencies that are...

Coca-Cola to Utilize Baseline Protocol For Supply Chain Tracking with Exposure to DeFi

Coke One North America (CONA) has partnered with Provide and Unibright to streamline the supply chain of the largest coca-cola bottlers in the region...

USD-Pegged Cryptos & BTC Continue to Rise in Contradiction to the Falling US Dollar

The US dollar is not having a good start in the second half of 2020. The dollar index, which measures the greenback against a basket...

Coinbase Wallet Integrates Unstoppable Domains; Send Payments Via .Crypto Addresses

Coinbase Wallet, a service rendered by US based Coinbase crypto exchange is extending its support for Unstoppable Domains according to an announcement made by...

Mad Rush to BTC Coming Soon as Barstool Sports' Dave Portnoy Declares ‘I Want to Buy All the Bitcoins'

Dave Portnoy, the founder of Barstool Sports, has now turned his attention to Bitcoin as he said, "I want to buy all the bitcoins." Portnoy...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today