Tether (USDT) Market Cap Sees 65% Surge Since Bitcoin’s April Bull Rally
Since the beginning of April 2019, Tether (USDT) market capitalization seems to be growing in tandem with the recent bitcoin price surge. The current USDT market cap which stands at $3.34 billion surged 65 percent since the bull rally on April 1, 2019.
In the meantime, Tether’s current performance comes amid the stablecoin’s ongoing legal battle with the office of the New York Attorney General (NYAG).
USDT Market Cap on the Up
The most popular stablecoin, Tether (USDT) has seen a 65 percent increase since the beginning of April 2019, which coincided with BTC’s price rally.
Bitcoin broke the $6,000 price level in early May 2019, then quickly jumped past the $8,000 market.
Data gathered from Skew, further reveals that the stablecoin’s market capitalization at $3.34 billion, reaching an all-time high.
With the surge of Tether’s market cap and BTC’s April bull rally – which saw the price of bitcoin fall just shy of $9,000 – it seems to justify the claims that there is a correlation between the Tether market cap gain and the BTC price surge.
Back in May 2019, reports revealed that Tether’s USDT, the most controversial stablecoin, wasn’t fully backed the dollar. Instead, only 74 percent of the supply was backed by fiat currency and other liquid assets.
Undoubtedly, the number one stablecoin in the market has come under severe criticisms over the past few months. As reported by BTCManager in April 2019, the office of the New York Attorney General (NYAG) filed charges against Bitfinex and Tether for allegedly collaborating to cover up a loss of funds totaling $850 million.
The NYAG claimed that Bitfinex and its stablecoin affiliate, Tether, mismanaged investors’ funds, a charge that seems to cement the lack of trust in Tether.
Recently, both Bitfinex and Tether recorded small victories, after challenging the NYAG’s jurisdictional authority to investigate both companies. Despite maintaining its number one position, other dollar-pegged stablecoin competitors seem to be slowing eating out of USDT’s market share, including USD Coin (USDC), DAI, and TrueUSD (TUSD).