Tether [USDT] passes Stellar Lumens [XLM] to enter top-3 altcoins
Volatility is essential to any market, even more so in a market that is required anonymity, decentrality and the absolute absence of regulations. It’s no surprise, given these core principles, the cryptocurrency market is manically volatile, and given this volatility a “safety” is required.
Stablecoins have emerged as that “safety,” cryptocurrencies that are backed by a fiat currency seems to offset that volatility, especially if it is evenly spread across the portfolio. Tether [USDT] the top stablecoin in the market has achieved significant interest this past year.
With the popularity of Tether, several other top stablecoins emerged, the 31st ranked Paxos Standard [PAX], Circle and Coinbase backed USD Coin [USDC], the Winklevoss twins’ Gemini dollar [GUSD] and True USD (TUSD), with the crypto-to-fiat market steadily growing.
Given the relative stable movements of the stablecoins and a disastrous month of November, that shaved off over $100 billion from the collective market cap and a further decline in December, USDT has become the 3rd most prominent altcoin, surpassing Stellar Lumens [XLM] and EOS [EOS].
Tether fell during the close of the previous week, before hitting a low of $1.851 billion in market cap during on Sunday morning began to shoot up and reached a high of $1.876 billion before reaching its current position of $1.866 billion.
Stellar Lumens could not survive the brutal onslaught of the bears which dragged the market cap to a dismal $103 billion, with several coins seeing familiar reds. XLM’s market cap has been dragged from over $5.3 billion, at the beginning of November to under $1.9 billion currently.
XLM’s recent slip and the relative stability of the dollar-backed Tether, the latter has surpassed the former on the global coin charts while the top-crypto Bitcoin [BTC] trades in the red and the market falters.
Despite the relative risk reduction, Tether has come in for a lot of flak this year, with critics questioning it the coin is actually backed 1-for-1 by the U.S. dollar. USDT also shares its executive management with Bitfinex, the cryptocurrency exchange, which also worries investors.
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