The dollar-backed stablecoin boomed in response to the crypto market crash Thursday.

The market size of the USDT digital currency has exceeded $5 billion.

Its trading volume in the last 24 hours exceeded that of Bitcoin and other cryptocurrencies.

Stable Demand Rising in Response to Market Fluctuations:

Stablecoins benefited from the market crash last week, as hundreds of millions of bitcoins were transferred to USDT.

More than $500 million has been transferred, according to the “Tether” transparency page, bringing the currency to a market cap of $5.12 billion.

Based on reports from Whale Alert, it appears that Tether added and injected more than $500 million in USDT in the days leading up to March 12.

Read:Learn about the possible reasons behind the rise of Bitcoin above the 47 thousand dollar level

Tether management also transferred another $115 million to USDT in the days after March 12.

While the crypto-tracking sites have not updated their data, CoinMarketCap data, for example, indicates that Tether still has a cap of $4.6 billion, and its charts give no indication that the overall supply or maximum market for Tether has changed over the past week.

In addition, official and unofficial figures exclude the yuan-backed, euro-backed, and gold-backed tether, which collectively represent more than $70 million in assets.

The Tether controversy still persists.

Unlike Bitcoin, USDT can be easily minted as long as there are sufficient collateral to do so.

This means that Tether creates and destroys USDT tokens in order to adjust supply, an action that in turn maintains parity with the US dollar.

But by increasing the demand for the stablecoin “tether”, the company is pumping more of it into the market to meet the demands of real investors.

But there is a lot of criticism about the method of checking Tether, with many followers wondering whether there are real guarantees to support the digital currency USDT?

Stablecoins are booming:

Stable coins other than Tether are thriving despite the market crash.

Read:Affected by the downturn in the crypto market…Cryptocurrency exchange CoinFlex proposes a restructuring plan

Circle CEO Jeremy Aller noted that the company’s USDC stablecoin is in increasing demand and that the circulating supply has grown to $568 million.

Like Tether, USDC is backed by a central group called CENTER, which has burned and minted several USDC tokens.

Read:Ripple CEO: The current collapse and downturn in the crypto market will pass too!

Meanwhile, the CEO of Binance reported that his stablecoin, Binance USD, which was introduced last September, has reached a market capitalization of $132 million, making it the fourth largest stablecoin.

Despite this, not all stablecoins perform well.

MakerDAO has taken emergency measures to protect the stability of Dai from Thursday’s crash.

Maker is currently auctioning governance tokens (MKR) as a further response.

Since Dai is backed and governed by coin holders, cryptocurrencies cannot be minted or burned unilaterally, and they have to decide by consensus.

It remains to be seen if the cryptocurrency market will fall further, and whether the demand for stablecoins will increase again among traders.

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