The Tether (USDT) has enjoyed increasing popularity for many weeks. The creation of new USDT addresses relogically flutes this progression, even if doubts persist on the funds supposed to back up the stablecoin.
Massive creation of new USDT addresses
We have noticed for several months: the stablecoin sector is booming and it’s the Tether leading the charge. Proof of this considerable advance, the creation of new USDT addresses, which was singled out by the analyst firm Glassnode :
Currently ~ 1850 new addresses holding $ USDT are recorded on the blockchain every hour.
That’s a new ATH – and an increase of almost 10x since late January.
– glassnode (@glassnode) May 21, 2020
“Tether continues to be widely adopted on Ethereum. Currently, approximately 1,850 new addresses with USDT are registered on the blockchain every hour. This is a new record, which corresponds to a multiplication [de cet indicateur] by 10 since the end of January. “
The market cap of Tether now exceeds $ 9 billion, a level never reached by altcoin. He thus manages to nibble a place on the podium of the largest cryptocurrencies by market cap, causing the XRP to drop to 4th place.
👉 Also discover: $ 1 billion Tether (USDT) is now stored on Binance
Is Tether still backed by the 1: 1 ratio?
While some are delighted with this incredible breakthrough in stablecoin, others are wondering about the funds behind Tether. As a reminder, stablecoin had already been entangled in controversy over the past year. In May 2019, he was forced to admit that his assets were not more backed than 74% by the fiat currency on which it is based: the US dollar (USD).
👉 To read about this case: BitFinex reimburses $ 100 million of $ 700 million owed to Tether
Tether has been issuing stablecoins at a very high rate for many weeks now. This frenzy therefore brings its share of questions: Can Tether make sure to have a dollar for each USDT produced? For now, doubts prevail, but there is little chance that it will slow down altcoin, which seems to have started on a streak never seen in the world of cryptos.
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From Marine Debelloir: Source link