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The cryptocurrency markets are crashing. It seems nothing is safe. Well, almost nothing…
Over the last day or so, the entire cryptocurrency market has shed billions in value. One set of digital assets that has not plummeted in terms of their market capitalization, and of course dollar value, is stablecoins such as US Dollar (USDT).
As investors rush for the exits amid arguably the most dramatic crash in cryptocurrency history, the market capitalization of US Dollar Tether has remained pretty consistent. In fact, over the course of the massive selloff, the size of the leading stablecoin’s total market has risen to more than $5 billion.
Amidst the market carnage, Tether, the stablecoin’s issuer, felt it prudent to remind the industry that the market capitalization of USDT did not suddenly drain along with the rest of the industry:
🔝Today we have surpassed a market capitalization of $5 billion, amid a surge in interest in crypto’s most liquid, stable and trusted currency!
This important milestone confirms Tether’s place as the pre-eminent stablecoin, with the biggest market capitalization. pic.twitter.com/HZSOkMLmTm
— Tether (@Tether_to) March 12, 2020
The company called it an “important milestone” and the confirmation of USDT as the “preeminent Stablecoins are a class of cryptocurrency that aim to provide price stability. One of the perceived drawbacks of cryptocurrency is... More.” The fact that there has seen sustained growth in the stablecoin’s market cap suggests that investors pushing up the market capitalization are waiting on the sidelines to reenter the market.
Other stablecoins have also enjoyed modest 24-hour gains in market capitalization. The Circle and Coinbase project USDC gained from $461 million to $491 million since the start of the recent volatility. The same growth cannot be seen in smaller stablecoin projects. Both TrueUSD, Binance USD, and others have lost market capitalization over the last day or two.
Overall, according to data from the Stablecoin Index by Messari, the entire market capitalization of all stablecoins has grown to more than $6 billion over the course of this market downturn. Whilst it’s certainly encouraging that some investors appear to be waiting for a good opportunity to enter the market, even $6 billion into the the almost $60 billion in losses from the entire industry will do little to restore shot investor confidence.
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