The last few months have been anything but easy for stablecoin Tether (USDT). Centralized cryptocurrency exchanges Coinbase and Crypto.com Canada have adopted resolutions affecting the digital asset. On the one hand, Coinbase has been urging investors to convert their USDT to USDC. On the other hand, Crypto.com Canada has decided to remove the Tether stablecoin from the list of assets it supports. However, it appears that Tether (USDT) has outperformed some large traditional payment solutions.
$18.2 trillion in transactions!
From 31 January 2023 it will officially be the end of a great partnership between Tether and Crypto.com. But, before this sad event, the Tether stablecoin community can rejoice in the recently released USDT data. These indicate it Tether surpassed Visa and Mastercard in terms of processed transaction volume in 2022. The cryptocurrency company that issues the flagship stablecoin has indicated this information via a chirp last January 14th
It appears that Tether (USDT) had an estimated transaction volume of $18.2 trillion in 2022. Visa and Mastercard on the other hand had $14.1 trillion and $7.7 trillion in processed transaction volume, respectively. The fact that Tether has processed more transactions than these two well-known traditional payment solutions says only one thing.
In fact, it proves it stablecoins have seen massive growth in recent years. It must be said that their adoption has increased significantly in areas of the world where the economic situation is complicated. In this context, the recent turmoil in cryptocurrencies has failed to dampen the evolution of stablecoins.
Could Tether actually be insolvent?
Last year Tether was under suspicion lack of transparency as for his backup test. It appears that the stablecoin was heavily impacted by the Terra crash and the dramatic fall of FTX. Today again, some question whether Tether is actually insolvent.
Recall that the first stablecoin by market capitalization lost its peg to the dollar after the fall of Terra. Additionally, Tether saw its market cap drop from $83.13 billion to $65.31 billion.
Despite the problems encountered so far, Tether remains the largest stablecoin and the third largest crypto by market capitalization. However, must be on guard, because its rivals USDC and BUSD could get over it. It would be enough if they continued to record victories against him, like last year.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.