There is nothing wrong with USDT traded volume being higher than the circulating supply. Actually, most of the USDT isn't even moved, because it just stays on the exchanges and is being used to exchange for other cryptos.
E.g., if there you do a couple of trades just buying and selling 1 BTC against USDT, then every time you buy or sell you increase the USDT traded volume by 1 BTC worth in USDT, so ~9000 USDT.
Because USDT is used as a transfer currency, it's not unlikely that its churn (an indicator for how often it gets traded) is very high.
got it. my complete question is if tether is possibly a fake/shit coin how/why is it trading so much? richard commented below that it's being used to hedge the market drop. i'm afraid that one day tether will implode and the effect will spill over into the market