Cryptocurrency News Today – the digital asset market has seen growth and greater adoption due to increased regulatory clarity. However, with the rise in uncertainty in the global financial markets, investors and traders have turned to digital assets for long-term investments. It is interesting to note that 2020 has been a huge year for stablecoins.

As cryptocurrency adoption grew, the demand for stablecoins grew as well. In a recent interview, crypto investor and the founder of Three Arrows Capital, Su Zhu, discussed the increase in the significance of stablecoins like Tether. Zhu pointed out USDT’s growing dominance in Asia. He so talked about how Tether has cemented its position when compared to other stablecoins.

Tether’s USDT has Been Crucial as an On-ramp for Digital Assets

Tether’s USDT has been crucial as an on-ramp for cryptos like BTC. Interestingly as the Bitcoin price crashed earlier this year, the demand for Tether on the other hand, skyrocketed with increasing premiums. When speaking on Tether’s growing significance in the crypto space and the broader regulatory response that crypto has enjoyed, Zhu noted that:

“I think USDT is doing a service to the world by bridging liquidity across exchanges and making wat for on-ramp off-ramp. Being in that position, will automatically draw the attention of regulators.”

According to market data for the last six months, the stablecoin Tether, has seen its market cap increase significantly in relation to the price of Bitcoin. Bitcoin’s last price crash on Black Thursday appears to have fueled Tether’s increase and recent dominance. Speakking on the growth in the demand for stablecoins, Zhu talked about how stablecoins like Tether’s USDT have utilized it’s diverse portfolio of use cases in the current economic atmosphere.

Many Users See Stablecoins as A Store of Value

Zhu noted that:

“The growth of Tether shows the rise in the global demand for stablecoins. There’s demand to settle cross-border transactions with stablecoins and using it as regular cash. We use it to pay for items or to carryout trades and for investments. Ultimately I believe this shows the power of the network.”

The co-founder of CoinMetrics, Nic Carter recently pointed out how the rise in the demand for stablecoins is proof of an increase in the demand for digital assets like BTC. Carter claims many users see stablecoins as an on-ramp and as a store of value. According to him:

“Initially, I believed stablecoins were for traders to send money via exchanges and retain them in the crypto market. But it is now clear that recently stablecoins have found a genuine use case, even for non-traders (regular people).”