For the latest data shown by CoinMarketCap, Tether (USDT) and not Bitcoin is the most widely used cryptocurrency in the world. But it is hard to find precise data on the trading volume.
October 2, 2019, | AtoZ Markets – USDT or Tether is a cryptocurrency token that is said to be linked or “tied” to US dollars. The Tether company claimed that the USDT has an equal value of 1 USD. It is grouped into a new type of cryptocurrency, which is called “stable coins.” It is mainly created to bridge the gap between fiat currencies and cryptocurrencies by offering a stable price equivalent to crypto or token.
CoinMarketCap stats shows that Tether is the token with the highest daily and monthly trading volume. Its market capitalization is 30 times lower. The volume of Tether has beaten Bitcoin for the first time in April and has continuously exceeded it since the beginning of August to around 21 billion dollars a day, says the data provider.
With a monthly trading volume of Tether about 18% higher than Bitcoin, it is probably the most important currency in the crypto ecosystem. It is one of the main reasons why regulators consider cryptocurrencies with a prudent eye and have put the brakes on crypto funds traded amid concern over market manipulation.
Tether’s Trade Volume Continues to Be Challenged
They lose a massive amount of daily volume about $ 1 billion or more depending on the data source, if it is not Tether, according to Lex Sokolin( ConsenSys’s global financial technology co-head). ConsenSys offers blockchain technology. He thinks that Some of the potential trading models on the market may start to fall away.
Recently, a report by Bitwise Asset Management was produced that shows the existence of false volumes in the cryptocurrency market. Although it cannot be disputed that there are problems with exchanges reporting false volumes, it is difficult to agree if the CoinMarketCap reports real volumes.
The recently released BTI report has even revealed that CoinMarketCap classifies exchanges based on trading volume without carrying out any necessary checks. This, in turn, motivates trading platforms to report false data and to gain ground by being listed on the website.
So, exchanges and market cap data providers are more than pleased to list Tether without any checks. As it helps them avoid the watchful eyes of government authorities, as stablecoins put their trust in the hands of tech giants. While the idea is large, at least in theory, it is susceptible to abuse such as fiat currencies.
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