Tether (USDT) now the third-largest cryptocurrency as its market cap soars past $40B

Tether (USDT) has experienced rapid growth over the past year. The world’s largest stablecoin just set a new milestone recently when it surpassed $40 billion in market capitalization.

Tether’s market cap reached $40.2 billion at the time of writing based on data from Coinmarketcap.com. This makes it the third-largest cryptocurrency behind Bitcoin (BTC) and Ethereum (ETH).

Meanwhile, Bitcoin still maintains its position as the world’s largest cryptocurrency with a market capitalization of 967billion. Ether also retains its second post with a market cap of $184 billion.

USDT overtook Binance Coin (BNB), which fell to the fourth spot with its 36.1 billion market cap. At the fifth spot is Cardano (ADA) with its market capitalization of $35.4 billion.

In terms of stablecoins rankings, Tether is still the undisputed number one and is four times larger than the second-largest stablecoin USD Coin (USDC), which has a total market cap of $10 billion, according to Cointelegraph. USDT has a market dominance of around 67 percent in the segment.

Tether’s market cap has grown by a factor of ten over the past year. This reflects the overall growth of the crypto market which surged from just $1 trillion in January to around $1.8 trillion this month.

“Tether has just surpassed a $40B market cap!” Tether announced on its official Twitter account. “In March 2020, Tether’s market cap was $4 billion! Since then, we’ve seen 900% growth in only one year!”

This year alone, Tether’s market cap has already doubled in less than three months. The dollar-pegged stablecon’s market cap stood at $20 billion as of January 1, 2021, according to Finance Magnates. It soared to $26 billion in February and then hit $35 billion on March 1st.

Considered as the bellwether stablecoin, USDT’s supply reflects the demand in the segment. In fact, it is the quote currency for cryptocurrencies on major exchanges such as Bitfinex.

“Crossing US$40 billion represents an important milestone for Tether,” Paolo Ardoino, CTO at Tether, said. “Our growth reflects the pivotal role Tether plays in the overall digital token ecosystem. People like using Tether. Whether you are a trader, developer or part of the growing numbers using Tether for payments and remittances, there are myriad of benefits to using the most liquid, stable, and trusted stablecoin.”

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