• Tether (USDT), the dominant stablecoin, has blown past leading payment operators, Visa and Mastercard, surpassing both in transaction volume processed.
• According to a tweet from USDT handled around $18.2 trillion worth of transactions in 2022, while Mastercard processed $14.1 trillion and Visa processed $7.7 trillion.
• Despite the overall challenges faced by the cryptocurrency market in 2022, the increasing use of stablecoins highlights the continuous growth of the blockchain industry.
Tether (USDT) has recently achieved a major milestone in the cryptocurrency space, surpassing both Mastercard and Visa in terms of transaction volume processed. According to a tweet from USDT, the stablecoin handled around $18.2 trillion worth of transactions in 2022, while Mastercard processed $14.1 trillion and Visa processed $7.7 trillion. This data was sourced from Coingecko and Mastercard and Visa’s respective websites.
The news of this milestone comes as a major achievement in the cryptocurrency space, as it indicates the increasing use of stablecoins. Despite the overall challenges faced by the cryptocurrency market in 2022, the increasing use of stablecoins highlights the continuous growth of the blockchain industry. The use of USDT provides users with the ability to benefit from blockchain technology’s improved speed and privacy.
However, the news has been met with mixed reactions on Twitter, with some pointing to „fake volume“ and „wash trading“ to dismiss the validity of the data. Many users in the cryptosphere distrust tether, citing a lack of transparency in the company’s operations. The company is responsible for regularly issuing large sums of money on the blockchain, with many accusing it of printing money at will. While tether has addressed these concerns, it has also failed to undergo a public audit to confirm that its USD reserves match the USDT in circulation.
In October 2021, USDT released a report confirming that its reserves were backed by the USD at a rate of 1:1. The report was conducted by a leading law firm and provided a level of transparency that has been lacking in the past.
Despite the mixed reactions, USDT’s milestone is an important step in the adoption of blockchain technology and the growth of the cryptocurrency industry. Stablecoins are a key component of the crypto space and their increasing use is a sign of the industry’s increasing maturity. As more people look to benefit from the advantages provided by blockchain technology, USDT’s success is likely to be replicated by other stablecoins.