Tether (USDT) is a stablecoin that is backed by the US dollar and aims to provide a stable and convenient alternative to volatile cryptocurrencies. USDT is widely used for trading on centralized and decentralized exchanges, as well as for storing value and hedging against market fluctuations.
USDT’s Market Cap Hits $83 Billion
USDT’s total supply is the amount of USDT tokens that have been issued on various blockchains, such as Ethereum, Tron, Solana, and others. Its market capitalization is the value of all USDT tokens in circulation, calculated by multiplying the total supply by the current price of USDT (which is usually close to $1). According to CoinMarketCap, USDT’s market capitalization has hit the $83 billion mark as of May 24th, 2023, edging towards its all-time high of $84.1 billion attained in May 2022.
However, this increase in USDT’s market capitalization has not been accompanied by a corresponding increase in trading volumes. According to Kaiko, USDT’s trading volume has declined significantly since the beginning of 2023, reaching multi-year lows over the weekend. This suggests that its primary use case is not for trading on centralized exchanges, but rather for holding and transferring value across different platforms and networks.
One of the factors that may have contributed to the growth of USDT’s market capitalization is the rising demand for USDT on Tron. Despite having minimal DeFi activity, Tron has surpassed Ethereum as the blockchain with the largest amount of USDT issued on it.
What Does This Means for Metacade?
MCADE, the native token of the Metacade ecosystem, could be one of the biggest winners if the market recovers.
Metacade has performed well over the past seven days despite the broader cryptocurrency market posting slight losses. The Metacade price is $0.02111, down 1% in the last 24 hours. The token is up more than 5% from the low of $0.01954 recorded over the weekend.
Despite its recent positive performance, MCADE is down 53% from its all-time high price of $0.04569. This could represent an excellent buying opportunity for investors.
USDT’s market capitalization is approaching its all-time high due to a combination of factors, such as increased demand for Tron, reduced competition from other stablecoins, and bearish market conditions. However, this does not necessarily reflect an increase in trading activity or adoption of USDT. Rather it may indicate that users are holding more USDT as a store of value and a medium of exchange across different blockchains.
