The increasing number of investors choosing digital coins as an inflation hedge amid the coronavirus outbreak has led to new records in cryptocurrency trading volume.
According to data presented by BuyShares.co.uk Tether, as the world’s most widely used cryptocurrency, reached over $1trn in monthly trading volume in August, 49% more than Bitcoin.
The most important coin in the crypto ecosystem
With monthly trading volume nearly 50% higher than that of Bitcoin, Tether, without a doubt, represents the most important coin in the global crypto market. As the world’s most used stable coin, it is also a pathway for many active traders into the crypto market.
As the world’s leading cryptocurrency in terms of market capitalization, Bitcoin reached over $702bn monthly trading volume in August, revealed the CoinMarketCap data.
Ethereum ranked third on the list of the most-traded cryptocurrencies, with $367.6bn in 30-day purchase volume. Statistics also indicate that Ethereum witnessed the most significant market cap increase in 2020. In the last eight months, the market capitalization of the fourth most-expensive cryptocurrency surged by 210%, rising from $14.2bn in January to $44.1bn at the beginning of this week.
Litecoin, EOS, and XRP follow, with $79.2bn, $76.7bn, and $66bn in monthly trading volume, respectively. The CoinMarketCap data indicate the three leading cryptocurrencies hit more than $2.1trn in monthly trading volume.
Tether market cap surged by 140% in 2020
Besides ranking as the most traded coin in the crypto ecosystem, Tether also witnessed a significant increase in market capitalization in 2020.
In January, the market cap of the world’s fourth-largest cryptocurrency stood at $4.1bn. In the next three months, this figure rose to $6.1bn. The increasing trend continued in the following months, with Tether market cap jumping to $9.2bn by the end of June.
Since then, Tether market cap grew by $800 million, reaching over $10bn this week, a 140% jump since the beginning of the year.