Total USDT market cap is approaching $120 billion
Tether (USDT), the largest stablecoin, continues to grow and strengthen its dominance in the market.
According to BeinCrypto data, the market cap of USDT is approaching $120 billion for the first time.
Tether USDT Approaching $120 Billion
Earlier this week, Tether issued $1 billion in USDT on the Ethereum blockchain, bringing its market cap to $119 billion. Blockchain platform SpotOnChain revealed that Tether has issued $35 billion in USDT in the past year.
This growth also confirms USDT’s position as the largest stablecoin. Remarkably, Circle’s USDC, USDT’s closest competitor, remains much smaller, holding less than a third of Tether’s market share.
As of Q2 2024, Tether holds more than $97 billion in U.S. Treasuries and repurchase agreements. This makes the company the 18th largest holder of U.S. Treasuries in the world, surpassing countries like Germany, the United Arab Emirates, and Australia.
Stablecoins are one of the most practical real-world applications of cryptocurrencies. They offer a stable alternative to volatile digital assets. These assets have gained significant adoption in emerging markets like Nigeria, where they are increasingly relied upon for savings, payments, and cross-border transactions.
Remarkably, this has contributed to a massive increase in Tether adoption. USDT has over 350 million users globally. The high adoption has helped the company’s business model, which has proven to be hugely profitable. It has generated over $400 million in the past 30 days, according to Token Terminal data.
At the same time, Tether has expanded into sectors such as agriculture and restructured its operations into four divisions, including finance, data, education, and energy. This diversification supports the company’s efforts to boost USDT distribution and invest in projects such as artificial intelligence and Bitcoin mining.
Despite its growth, Tether has faced criticism. Consumer research organization Consumer Reports has raised concerns about the risks posed by Tether’s business model, pointing to the potential for significant risk exposure to users. Several market watchers have also raised alarms about the company’s reserves.