Although billions of new USDT have been printed in the last few months, this most popular stable coin has beaten the ripple and is now the third largest cryptocurrency by market cap.
Ripple, it has seen a continuous decline in market capitalisation. It recorded the lowest price against bitcoin earlier this month.
Tether Joins TOP3 Cryptocurrencies
The Tether, which is the equivalent of the American dollar, has recently been mass-printed. This was to respond to the demand from investors and traders. In April alone, the company created over 1.5 billion USDT.
Data from the "Whale Alert" regularly report huge batches of USDT printed by Tether Treasury. In the first week of May alone, it printed almost 500 million stable coins.
As expected, the large amount of newly created USDTs in the market helped Tether overtake the Ripple and become the third largest cryptocurrency As this article was written, Tether's market cap is $8.85 billion and the Ripple is $8.8 billion.
In addition to the growth of Tether's market cap, large increases were also recorded in the number of transactions.
According to GlassNode data, the 1-day moving average (MA) of USDT transfers reached a new ATH on May 21, with 8,334,167. The new record did not last long, as the next day the number rose to 8,590,083.
Number of transactions on May 2020 outperfromed last ATH from September 2019.
Tether And The Price of Bitcoin
In the crypto community, it is very often discussed whether USDT has a direct impact on the price of Bitcoin. But it all depends on the point of view
A study conducted by American scientists claimed that the Tether could have been the reason for the biggest growth in history in 2017. It was caused "probably by market manipulation". The Tether denies this theory, saying that it was never used for manipulation.
Other studies claim that the USDT does not directly affect the price of bitcoin. The analysis suggested an inverse correlation between the price of bitcoin and the total supply of tethers. Decreasing amount of USDT on the exchanges may cause the price of bitcoin to fall.