USDT Trading Volume Explodes: Over $110 Billion In 24 hours

Key Points:

• Tether’s stablecoin, USDT, recently hit a milestone with its market cap briefly exceeding $100 billion.
• The trading volume of USDT also surpassed $119 billion, reflecting high trading activity.

Tether’s USDT briefly surpassed $100 billion in market cap amidst a crypto trading frenzy, with USDT trading volume exceeding $119 billion.

Tether’s stablecoin, USDT, recently reached a historical milestone as its market capitalization briefly exceeded $100 billion, as per CoinGecko data. The trading volume of USDT also exceeded $119 billion, indicating a high level of activity.

USDT Trading Volume Explodes: Over $110 Billion In 24 hours## What’s driving the surge in USDT trading volume?

As the most popular stablecoin, USDT plays a crucial role in the digital asset market. It stands as a bridge between traditional fiat money and blockchain-based markets, providing liquidity for trading and lending.

Increasingly, it’s being used for transfers and savings in developing regions to access dollars outside of the traditional banking .

USDT’s history traces back to 2014, and since then, it has expanded to several blockchains and launched stablecoins pegged to other assets.

Readmore: BlackRock Spot Ethereum ETF Is Now Delayed By SEC To Extend Approval Period

Scrutiny Over Tether’s Reserve Management Practices

Its market value saw significant growth during the 2020-2021 crypto bull market, rising from $4 billion to $83 billion by mid-2022. It is now the preferred trading pair for cryptocurrency prices on centralized exchanges.

Despite the success, Tether has faced scrutiny over its reserve management, including the use of risky backing assets and a lack of independent audits. However, the company states that it is now primarily backed by more secure investments such as U.S. Treasury bills and deposits in money market funds.