• Tether has bigger daily trading volume than Bitcoin.
  • Many cryptocurrency exchange customers do not know that they use USDT instead of USD.

Bitcoin is the largest cryptocurrency with the total market value $151 billion. BTC has the biggest market share, close to 70%; and probably the biggest army of supporters. However, when it comes to usage, Bitcoin takes a back seat to another coin. 

According to the data, complained by CoinMarketCap, a stable coin Tether has the largest daily trading volume - over $21 billion at the time of writing against Bitcoin’s $16 billion. Tether’s trading volume has been consistently higher than Bitcoin’s since the beginning of August, despite the fact that Tether market value is just $4 billion, which is nearly 40 times s smaller as compared to Bitcoin.

“If there is no Tether, we lose a massive amount of daily volume -- around $1 billion or more depending on the data source. Some of the concerning potential patters of trading in the market may start to fall away,”  says Lex Sokolin, global financial technology co-head at ConsenSys, as cited by Bloomberg.

Considering huge trading volumes, Tether is considered an important part of the cryptocurrency industry and a pathway from fiat to crypto world in many countries like China, where cryptocurrency exchanges are banned.

According to the recent research data, Tether is used in 40% of all transactions on Binance and in 80% on Huobi - these are the two largest cryptocurrency exchanges in the world. Meanwhile, about 70% of all cryptocurrency trading volume is produced by Asian traders.

However, oftentimes, exchanges make the impression customers are holding dollars, but in fact, they hold tether because banks won’t allow them to have dollar accounts and hold dollars on behalf of customers. 

“I don’t think people actually trust Tether -- I think people use Tether without realizing that they are using it, and instead think they have actual dollars in a bank account somewhere,”  Thaddeus Dryja, a research scientist at the Massachusetts Institute of Technology, explains.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin resumes the decline after a consolidation period

Bitcoin crashed below $8,700 and tested $8,550 during early Asian hours on Thursday. The coin moved outside the recent range and extended the downside into the end of the week. BTC/USD has lost 2% since the beginning of the day and 1% in recent 24 hours. 

More Bitcoin News

Altcoin segment: bullish war drums

Sunny King, the creator of the consensus protocol Proof of Stake (PoS), has stated in a recent interview that Bitcoin has a vital role as a reference value in the crypto-verse, but that the highest growth potential is in the Altcoin segment.

More Cryptocurrencies News

ETH/USD hovers around $185.00, vulnerable to further losses

ETH/USD is trading at $185.27 at the time of writing, having recovered from the intraday low of $184.11. The second-largest digital asset with the current market value of $18.8 billion has lost 1.34% of its value since the beginning of Thursday and stayed mostly unchanged on a day-to-day basis. 

More Ethereum News

Ripple price prediction: XRP/USD smashes below critical support of $0.2700 – Confluence Detector

Ripple’s XRP extended thee sell-off to $0.2633 on Thursday. The coin is moving in sync with the market, controlled by bearish sentiments. A sustainable move below $0.2700 support bodes ill for XRP's short-term forecast, making it vulnerable to further losses.

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls wasted their chance

Bitcoin has been oscillating in a depressingly tight range since the beginning of November. Vanishing volatility makes it harder to engineer a decisive breakthrough from the range. 

Read the weekly forecast

BTC

ETH

XRP