Since a few months, Tether keeps getting bigger and bigger. The famous stablecoin is today a pillar so that it has managed to rise to third place in cryptocurrencies in terms of capitalization. It has indeed exceeded the Ripple and now comes to tickle the Ethereum.
Where does such an increase in capitalization comes from ?
As you can see, in less than 3 months the market capitalization of the Tether has increased from around 4 billion to almost 10 billion dollars. Where does such a sudden increase come from ? According to Decrypt, it seems that China is no stranger to this situation.
Indeed, you are aware that Bitcoin is authorized there but that its exchange is prohibited. A particular regulation that pushes investors to use Tether so as to access markets to which they could not have access.
According to the Decrypt's source :
Some 100,000, mainly private investors, engage in the Tether-BTC swap.
Although, the Chinese government seems to want to discourage its residents from investing in Bitcoin, they have found a diverting way to do so.
What is the next step ?
Paolo Ardoino who is the CTO of Bitfinex and Tether recently spoke on the ambitions of stablecoin in a podcast.
According to him, it would be rather easy to reach the 200 billion capitalization, but it will be much harder to go further. The reason is simple : Tether will need a big bank that can support them. However, the current borrowing rates proposed by the major banks would put Tether in a complicated financial situation.
In any case, the situation will evolve and it will be interesting to see if Tether remains the most popular stablecoin on the market. Maybe India's situation will be an asset for Theter.
Do not hesitate to give me your opinion on this stablecoin in the comment section !
Thanks for reading me, have a nice day, stay safe !