Most people have heard of Bitcoin, which is the world’s most expensive cryptocurrency.
But another currency that leverages blockchain technology, Tether, was the most traded crypto product in September, according to CoinMarketCap.
Tether’s monthly trading volume reached US2.8 trillion in September, up 56 percent from the previous month.
That compares to nearly US$1.2 trillion for Bitcoin and US$750.7 billion for Ethereum.
Tether was launched in 2014. According to its website, it “allows you to store, send and receive digital tokens pegged to dollars, euros, and offshore Chinese yuan person-to-person, globally, instantly, and securely for a fraction of the cost of any alternative”.
“As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border transactions across the blockchain,” the website states.
Bitcoin and Ethereum still have vastly higher market capitalizations than Tether.
CoinMarketCap.com pegs Bitcoin’s market cap at US$942.6 billion and Ethereum’s at US$407.4 billion, compared to just US$68 billion for Tether, which is priced at US$1. Bitcoin, on the other hand, is selling for nearly US$50,000, as of this writing.
Late last month, the U.S. District Court for the Southern District of New York dismissed half the claims in a lawsuit against Tether and Bitfinex alleging deceptive, manipulative, and anticompetitive practices.
It was filed by five cryptocurrency traders who claimed that they suffered financial losses as a result of the companies actions.
“Even for the remaining claims, the Court’s order raises substantial issues that will ultimately be fatal to the plaintiffs’ case,” Tether stated in a news release following the decision.