USDT Tether Stablecoin Experiences Significant Growth Amid US Banking Crisis

USDT stablecoin. (Photo; Doc. Criptomonedaz)

JAKARTA Stablecoin is a crypto asset whose value is pegged to a value of fiat money 1:1. One of the largest stablecoins by market capitalization is USDT published by Tether. USDT is pegged to US dollar prices. That way, USDT prices will be comparable to US dollars.

Stablecoins are expected to experience significant growth in the future as Bitcoin adoption and other crypto assets increase. USDT itself is integrated into more than 10 different blockchains such as Ethereum, Binance Smart Chain, Tron, Polygon and others.

USDT experienced an increase in rapid growth in the midst of the US banking crisis which began with Silicon Valley Bank and then followed the collapse of a number of other regional banks.

Based on Coingecko data, USDT Tether's market cap has increased before a shock in the crypto industry last year. While the second largest stablecoin, USDC was affected by the bankruptcy of Silvergate Capital.

On the other hand, the increasing adoption of Bitcoin as a hedge against inflation also increased USDT prestige. According to Anders Kvamme Jensen, founder of AKJ Global Brokerage and digital asset specialist assessed that the banking crisis had increased what he called hyper-bitcoinization. Jensen predicts that in the future the dollar will be worthless.

Then, USDT stablecoins have a market capitalization of 130,788 billion US dollars (or around Rp1.9 quadrillion). USDT experienced a significant increase in market value among other stablecoins. Even so, USDT is not the sole stablecoin ruler in the crypto industry. Other stablecoins continue to emerge and become USDT competitors.