Leading stablecoin Tether (USDT) recently recorded a new all-time high in the value of its average daily transfer, which is interestingly more than that of Bitcoin and the online payment giant, PayPal.
According to a recent report, this surge in the stablecoin’s average transfer value had been more than $3.55 billion on the 20th of August. This value is 20% higher than the average transfer value of Bitcoin, which is currently sitting at around $2.94 billion, and that of PayPal, which was also within the same range as Bitcoin during the Q2 of 2020.
With the fast-increasing pace at which DeFi projects are expanding since the beginning of this year, USDT has witnessed impressive growth and that is why the increase of its average transfer value does not come as a surprise. By exceeding the transfer value of Bitcoin, Tether is now the dominant project for on-chain transactions in the crypto space.
2020: The Year of Tether USDT
The supply of Tether has also massively increased with the figure presently around $13 billion, which is a whopping 225% increase in the coin’s supply since the beginning of 2020.
It was this surge that led the Chief Technology Officer at Bitfinex to suggest that USDT’s supply might hit $20 million before the year runs out, calling 2020 “The Year of Tether.”
Due to the current state of the world economy, a lot of people are now recognizing the immense benefits of digital currencies in terms of their utility, viability, and security. This is now gradually shifting the attention of more and more people away from the conventional payment methods and turning it to cashless means of payment.
Tether’s supply meteoric rise and the recent surge in its average transfer value is one evidence to prove the increasing acceptance of digital currencies. The federal governments of many countries are now reconsidering their stand on the issue of digital currencies.
Most of them are deliberating on developing a national digital currency, while others have already developed theirs and are currently testing it on various sectors of their economy.
Just last month, the Philippines’ central bank was reportedly considering the development of its native digital currency.