Tether, one of the stablecoin giants, has seen its USDT grow by nearly another $1 billion, especially after the negative developments in BUSD. Thus, Tether was the winner at the end of the day, cementing its place in the top three.
Tether USDT Raises Another $1 Billion
USDT’s market capitalization on Tuesday started at $68.47 billion, according to the latest data. At 09:10 in the morning, its value rose to approximately $ 69.23 billion. Meanwhile, Paxos’ BUSD saw a net drop from $16.14 billion on Monday to $15.46 billion on Tuesday. After its troubles with the New York Department of Financial Services (NYDFS) and the SEC, Paxos announced that it would stop minting new stablecoin units starting next week.
What are BUSD and USDT?
Stablecoins are digital currencies whose value is tied to the US dollar, such as BUSD and USDT. Despite having the programmability and transferability of a crypto asset, each is backed by multi-billion dollar reserves that are mostly made up of cash and US T-bills. A key component of the crypto economy, these tokens are frequently traded against by investors on the CeFi and DeFi exchanges when purchasing other, more volatile cryptocurrencies.
The Rise of Tether USDT
The developments in BUSD have prompted those in search of stablecoin liquidity to turn to Tether USDT. Tether, which ranks in the top three with Paxos and Circle, has been on the rise, especially with the fall of Paxos. According to current data, Tether‘s stablecoin market dominance has increased to 50.77%.
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