While Bitcoin may have achieved dominance of the cryptospace, indications have emerged that it may not be the world’s most used cryptocurrency. Even though data from the cryptospace is hard to get and for the most part opaque, recent data from sources have shown that Tether has the highest figures in terms of volume.
While Bitcoin’s total volume stands at around $28 Billion, while that of Tether is at around $34 Billion. According to coinmarketcap.com, the specific volume of Bitcoin stood at $28, 406, 752, 836 while Tether’s stood at $34, 656, 168,080.
In terms of market capitalization though, Tether stands at $4,620,393,897 while that of Bitcoin is $146,552,636,036. This inverse relationship between trading volume and market capitalization is caused by a few factors.
Firstly, Tether is a stablecoin whose value is fixed to a specific set of assets (the US dollar and dollar-denominated assets). This allows for an increase in stablecoins and their use-case scenarios to become virtually unlimited. Due to the value peg as a digital asset, Tether and other stablecoins are also used in many cases in place of fiat currencies.
This occurs a lot of time when cryptocurrency exchanges hold assets in values of fiat currencies. In order to overcome regulatory hurdles such cryptocurrency exchanges usually use stablecoins instead of pure fiat currencies. This also makes Tether attractive as a stablecoin.
Although Tether and its parent company have had run-ins with regulators, it still has increased in popularity since the concept was first espoused about six years ago.
Since then, the cryptocurrency token has grown in leaps and bounds. Though in the past the cryptocurrency has been accused of market manipulation, most members of the cryptospace still tend to trust the cryptocurrency.
This has led many people to indicate that the cryptocurrency is being actively manipulated. While the exact process by which the cryptocurrency is issued and how its reserves are generated, the world’s highest cryptocurrency by volume has also made many to become skeptical of the cryptospace for now.
This also indicates that a lot more needs to be done as far as transparency is concerned. Public utility digital assets such as Bitcoin, Ethereum and others have a threshold when it comes to transparency.
Private issues of digital cryptocurrencies, however, have their own set of rules. This has created numerous murky circumstances. They range from the quasi-legal to outright frauds.
The governmental response hasn’t been easy as well. Nation-states have restricted the use of certain types of digital assets to outrightly banning them.
In certain jurisdictions, all forms of cryptocurrency tokens are banned. This has also on the other side spurred some success and positive responses for the cryptospace.
Chinese President Xi Jinping had at the last politburo had encouraged all Chinese citizens to seize the opportunity that Blockchain technology offered. This was followed up by the passing into law of the Blockchain laws. Within a few months, the World’s first blockchain public infrastructure (the blockchain service network) will run throughout China.
This will open up new frontiers of adoption for the cryptospace. The Chinese form almost a quarter of the World’s population. New vistas of adoption are surely bound to occur on Chinese soil. As for stabecoins, the issuance of the Central Bank Digital currency will also make the Chinese to become the first in the world to do so.
Hence, Tethers’ volume advantage may be challenged in the next couple of months by a digital Renminbi.
This, of course, will also start a global conversation on the role of cryptocurrencies in humanity’s future. This is how global adoption starts.