- Token capitalization exceeded $82 billion
- Yesterday, May 8, the asset crossed $1.01
- The company is not “tied” to the U.S. and therefore less vulnerable to regulatory pressure
The USDT has overtaken not only other steiblockers but also, it seems, the rest of the market since the U.S. banking crisis.
Experts called it the “least risky” crypto-asset, which perfectly reflects the growth in capitalization as well as the increase in the value of the token.
Since mid-April, for example, the ratio of USDT to USD has held above $1.. Yesterday, May 8, the rate reached $1.01. Meanwhile, the asset’s capitalization remains above $82 billion.
“The banking crisis is fueling the so-called ‘hyperbitcoinization.. This entails a depreciation of the USD” – Anders Kvamme Jensen, founder of brokerage firm AKJ.
The share of USDT in the stablocoin market is steadily growing:
So why exactly USDT?
It’s simple, stablocoin is seen as a “middle ground” between the traditional and cryptocurrency markets.
The recent House of Representatives initiative to prepare a regulatory framework for the sector has only strengthened such an association.
BTC, ETH and some other cryptocurrencies are seen as something too far removed from TradeFi.. And Tether’s main competitor, Circle, has been hit hard by the recent crisis in the United States.
And the USDT issuer is not “tied” to the States. Circle, as well as Paxos, which previously issued BUSD, are not just forced to comply with regulatory requirements. They are in their jurisdiction.
“Tether is not associated with the US, which reduces regulatory risk in the eyes of customers. Ironic, but USDT is probably the most reliable crypto-asset right now,” Conor Ryder, an analyst at digital asset data provider Kaiko.