- Token capitalization exceeded $82 billion
- Yesterday, May 8, the asset exchange rate crossed the mark of $1.01
- At the same time, the company is “not tied” to the United States, and therefore is less exposed to the risk of pressure from regulators.
After the banking crisis in the US, USDT outperformed not only other stablecoins, but, apparently, the rest of the market. 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.
So, for example, since mid-April, the ratio of USDT to USD kept above $1. Yesterday, May 8, the rate reached $1.01. At the same time, the capitalization of the asset 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 the brokerage firm AKJ.
The share of USDT in the stablecoin market is steadily growing:
So why exactly USDT?
Quite simply, a stablecoin is seen as an “intermediate link” between the traditional and cryptocurrency markets. The recent initiative of the House of Representatives to prepare a regulatory framework in this sector has only strengthened this association.
BTC, ETH, and some other cryptocurrencies are seen as being too far away from TradeFi. And the main competitor of Tether, namely Circle, was seriously affected by the recent crisis in the US.
At the same time, the issuer of USDT is not tied to the United States. Circle, as well as Paxos, which previously issued BUSD, are not just forced to comply with the requirements of regulators. They are under their jurisdiction.
“Tether is not associated with the US, which reduces regulatory risk in the eyes of customers. Ironically, USDT is arguably the most trusted crypto asset right now.” Conor Ryder is an analyst at digital asset data provider Kaiko.