Cryptocurrencies are certainly a sign of the times. For most, what is instantly recognizable is bitcoin, possessing the largest share of visibility, having occupied several investors and analysts at times. However, there are few who now argue that the projected cryptocurrency is beginning to lose its luster.
Competition between cryptocurrencies is understandably one of the reasons bitcoin seems to have been out of its way. If we add more than 30% of the losses since the beginning of the year, coupled with the fact that traders are in a hurry to close their long positions, it is understood that the pressures on bitcoin are in favor of challenging it from the market leadership of cryptocurrencies.
So, what is the world’s most widely used cryptocurrency? If you think its Bitcoin, which accounts for about 70% of the total value of the global digital asset market, you’re probably wrong.
Data from the CoinMarketCap.com show that the cryptocurrency with the highest daily and monthly trading volume is Tether, whose capitalization is more than 30 times lower. Tether’s volume surpassed bitcoin’s volume for the first time in April and has remained ahead consistently since early August at a rate of about $21 billion a day.
With Tether’s monthly trading volume about 18% higher than bitcoin, it is undoubtedly the most important currency in the crypto ecosystem. Tether is also one of the main reasons why regulators treat cryptocurrencies cautiously and have “braked” digital currency exchanges amid concerns about market manipulation.
“If Tether doesn’t exist, we’re losing a huge portion of the daily volume – about $1 billion or more, depending on the data source,” said Lex Sokolin, head of global economic technology at ConsenSys, which offers blockchain technology. ‘Some of the potential market trade may begin to recede.’
Tether is the world’s most used stablecoin, a class of currencies that seek to avoid price fluctuations, often through price or stock consolidation. It is also a pathway for most active traders in the world in the crypt market. In countries such as China, where cryptocurrency exchange is prohibited, traders can pay cash informally to get Tethers with few questions, according to Sokolin. From there, they can trade Tethers for Bitcoin and other crypts, he said.
This article is a contribution by cryptocurrency blog Bitnewsbot.com. Bitnewsbot publishes regularly content about where to spend your cryptocurrencies, news about the industry, and reviews, such as this popular porkbun review.Watch online movies