CRYPTO MOVERS AND PRICES
Crypto remained weak this morning with bitcoin well below USD 11,000. Spot volumes are as elevated as they have been in a month trading 1.3x the 30-day average.
CRYPTO STORY OF THE DAY
Amid a confluence of factors, Tether had its largest market cap growth ever in August.
U.S. dollar tether (USDt), is by far the world's largest stablecoin by market cap. At a cap of USD 13 billion, it is over 10x larger than the world's second largest stablecoin USD Coin. Over the last 3-years, USDt has become vital to the crypto ecosystem. The vast majority of the most active pairs on crypto/crypto exchanges are denominated in USDt and most recently it has become the primary mechanism for maneuvering in DeFi. In August, the total market cap of USDt moved from just over USD 10 billion to 13.7 billion.
August continued an amazing year for USDt, which had a market cap of just over USD 4 billion at the beginning of 2020. The token is benefitting from a perfect storm of factors. Trading venues in the space continue to innovate and favor USDt in most pairs denominated in stablecoin. In addition, the wave of activity in decentralized finance has shown a new use case for Tether both on decentralized exchanges and as a rail when navigating different yielding platforms. After a difficult 2019 which saw a variety of legal issues for the company and a brief decline in market cap, the company has reestablished itself as the dominant stablecoin provider and continues to innovate in the space.