Tether’s USDT, the leading stablecoin by market capitalization, has recently achieved a landmark milestone, reaching an all-time high store cap of $100 billion. This achievement not only signifies a 9% growth since the beginning of the year but also solidifies Tether’s dominance in the stablecoin sector, significantly outpacing its closest competitor, USD Coin (USDC), issued by Circle.
Tether’s Market Dominance
As of March 4, Tether’s market cap momentarily surged to the $100 billion mark, according to data from CoinGecko. This places Tether over $71 billion ahead of its nearest competitor, USDC, establishing an unparalleled lead in the stablecoin. Such a significant market cap positions Tether alongside major corporations like BP and Shopify, reflecting its substantial presence in the digital asset space.
Tether operates across 14 different blockchains and protocols, standing as the third-largest cryptocurrency by store cap, trailing only behind Ether. It has become an essential asset for traders seeking stability in the volatile crypto, with its issuer claiming each USDT token is backed 1:1 with reserves, mainly consisting of yield-bearing U.S. Treasury Bills.
Record Profits and Stablecoin Sector Growth
In the last quarter of 2023, Tether reported a record quarterly profit of $2.85 billion, highlighting the profitability of its investments, especially in T-Bills. The stablecoin sector, as a whole, has seen a significant increase in market cap, with a $3.26 billion rise over the past eight days reported, totaling $144.08 billion. This growth, a 2.31% increase, has been driven by expansions in the supply of leading stablecoins like Tether, USDC, DAI, and FDUSD.
Crypto Market Recovery
The broader cryptocurrency is also experiencing a resurgence, with the total market cap exceeding $2 trillion in the last month. This recovery is underscored by Bitcoin’s 50% price surge, reaching two-year highs. Amid these positive developments, the crypto space faces challenges, such as the lawsuit involving the cryptocurrency trading platform FTX and its alleged misuse of Tether (USDT) in a profit-making scheme.
Despite the lawsuit, which implicates FTX and its sister firm, Alameda Research, in a scheme involving the creation and sale of USDT through an unofficial credit line, Tether has not been named as a defendant. Lawyers for the victims have provided extensive evidence to support their case, shedding light on the complexities of the crypto trading world.
Conclusion
Tether’s achievement of a $100 billion market cap is a testament to the stablecoin’s growing importance and the overall recovery of the cryptocurrency market. As the sector continues to evolve, Tether’s dominance and the broader market’s resilience highlight the dynamic nature of digital assets and their potential for growth.
