Tether, the most popular stablecoin, surpassed the $ 30 billion volume level while increasing corporate interest in Bitcoin continued.
Tether market volume is rising
As of January 1, 2021, the market capitalization of the stablecoin was just over $ 20 billion, and by February 1, it was $ 26.6 billion. However, in the past few weeks, Bitcoin’s price has continued to increase as it surged to over $ 40,000.
According to Tether’s transparency page, the company currently has a total assets of $ 30.468 billion.
Demand for USDT is driven mainly by large investors who prefer to process their transactions through over-the-counter (OTC) desks. Exchanges working with these OTC desks need more liquidity on their platforms hence the increased demand for the asset.
Despite all the popularity, closely related to the crypto exchange Bitfinex, Tether is no stranger to the controversy. The company behind Stabilcoin has been accused of market manipulation in the past and is currently engaged in a legal war with the State of New York.
Second, they accuse both Tether and Bitfinex of a cover-up to hide nearly $ 850 million in customer and corporate funds loss.
Earlier this month, Bitfinex said it had fully repaid the $ 750 million outstanding loan from Tether. The Singapore-based exchange lifted its credit line in 2018 after it claimed that payment processor Crypto Capital stole $ 850 million.