264 total views
Despite the continuous crypto market downturn in 2022, USDT (Tether) has surpassed the two traditional payment giants in terms of transaction volume value.
In the past year, Tether said the total transaction value of USDT reached $18.2 trillion. Meanwhile, Mastercard and Visa processed a total of $14.1 and $7.7 billion, respectively.
Tether’s high transaction volume is testament to the strong growth of stablecoins over the years. Despite the challenges facing the crypto industry, the stablecoin sector appears to be thriving. Increased adoption of stablecoins in countries with weak economic situations puts their fiat currencies at a disadvantage.
Looking back at the past 2022 of USDT and Tether was a difficult year with many bad fluctuations from macro to information related to itself. The Tether company received a lot of doubt about its reserves and solvency after the UST-Luna event in May and the FTX exchange in November.
USDT quickly lost the US dollar peg at the height of Terra’s FUD crash. During this period, the stablecoin issuer redeemed more than $10 billion. Some traditional financial institutions have even taken short positions for USDT because of speculation surrounding the company’s financial situation.
While USDT is still the dominant stablecoin in the crypto market, competitors like USDC and BUSD have more wins in 2022 than it does. USDT’s market capitalization slipped from a high of 83.13 billion to a low of $65.31 billion. On the other hand, the market capitalization of USDC once increased to $56 billion.
During this period, many centralized exchanges like Coinbase urged users to convert their USDT holdings into USDC. More recently, Crypto.com delisted USDT from Canadian users, citing regulatory compliance measures.
Glassnode data shows that USDC transfer volume has surpassed USDT by almost 5 times by the end of 2022. USDC adoption has also improved as investors believe it to be a safer option than USDT.
USDC assets are backed by cash or short-term US Treasury bonds, audited by global accounting firm Grant Thornton. On the other hand, Tether is not transparent about its reserves or audits.
These issues have led some community members to question Tether’s 2022 transaction volume data. Some claim the metrics are wash trading, while others demand that the top stablecoin issuer disclose its reserves.
#USDT #Tether #Transaction #Volume #Surpasses #Visa #Mastercard