- USDT’s market cap reached a new ATH, leaving TUSD and USDC behind.
- Holders confirmed preference by holding USDT, but a new stablecoin is in town.
Amid regulatory scrutiny and uncertainty surrounding stablecoins, Tether [USDT] has recently achieved a new milestone as its market cap reached an All-Time High (ATH). According to IntoTheBlock, USDT’s market cap reached $83.76 billion.
Realistic or not, here’s USDT’s market cap in USDC terms
This development comes after the world’s largest stablecoin slightly fell from its previous high hit on 1 June.
#USDT market cap just reached a new all-time high.
In early June, $USDT market cap reached its previous high from May 2022 but has not been able to sustain that level. The market cap has now confidently reached a new all-time high. This shows that despite regular FUD, $USDT… pic.twitter.com/QqRYXEiztG— IntoTheBlock (@intotheblock) July 26, 2023
As USDT reigns, others fall apart
The milestone signals renewed confidence in USDT over other stablecoins increased. This signals a spike in circulation and use of the coin. However, it has not been an easy ride for USDT, especially since TrueUSD [TUSD] came into the spotlight.
Holders’ appeal for stablecoins bring a sense of confidence that they can redeem their assets reliably. Furthermore, this gives them a lower chance of losing their value compared to other cryptocurrencies.
Between January and the time of writing, TUSD’s market cap went from $943 million to $2.8 billion. And this soaring market cap could be linked to lingering regulatory concerns market participants have around Circle [USDC]. It also links to the increasing phasing-out stage of Binance USD [BUSD].
While TUSD continues to make its mark known, USDC has lost hold of its market cap position. One reason for this is the way Ripple [XRP] surpassed it since the project partially won its SEC case.
In March, USDC recorded as much as $10 billion in outflows after Circle owned up to being affected by the chaos that hit the traditional finance industry.
HODLing season as a new candidate appears
With reference to its volume, on-chain data showed that USDT pumped to $25 billion on 24 July. However, the volume had decreased to $18.3 billion at press time.
As a yardstick used to measure an asset’s health and liquidity, a stablecoin’s volume shows the rate of market strength. Therefore, USDT’s volume reflects a relative improvement in liquidity gained.
As per the 7-day Market Value to Realized Value (MVRV) ratio, Santiment showed that USDT had fallen into the negative ratio. The MVRV ratio divides the market capitalization by the realized cap.
The more the ratio increases, the more participants are willing to sell for potential profits. Thus, at -4.338%, the USDT’s MVRV ratio means that the accumulation of the coin has resulted in HODLing rather than exchanging for other assets.
How much are 1,10,100 USDTs worth today?
Meanwhile, Binance, who was partially in charge of BUSD has revealed that it would list a First Digital [FDUSD] stablecoin.
Developed by Hong Kong-based technology-driven firm, Binance noted that the First Digital stablecoin would operate like others with a 1:1 USD peg.
FDUSD is a 1:1 USD-backed stablecoin issued by First Digital Labs.
Reserves of FDUSD are held by First Digital Trust Limited, @FirstDigitalHQ, a qualified custodian and registered trust company headquartered in Hong Kong.
Learn more about it here 👇
— Binance (@binance) July 26, 2023
