Crypto stablecoin Tether (USDT) has reached an unprecedented market capitalization of $100 billion, marking a 9% year-to-date growth and widening the gap with its closest competitor, USD Coin (USDC).
Tether briefly reached the $100 billion milestone on March 4, with its market capitalization fluctuating based on current prices and circulating supply data from CoinGecko. This significant lead over USDC, issued by Circle, underscores Tether’s dominance in the stablecoin market.
With its market cap surpassing $100 billion, Tether now stands shoulder to shoulder with industry giants like BP and Shopify. It’s available on 14 different blockchains and protocols, making it a pivotal choice for crypto traders seeking stability.
As the third-largest cryptocurrency by market capitalization, behind Ether (ETH), Tether has emerged as a crucial asset for traders amidst the recent resurgence in the crypto market, which has seen Bitcoin (BTC) reach two-year price highs.
Tether asserts that each USDT token is backed 1:1 by its audited reserves, primarily composed of U.S. Treasury Bills (T-Bills). The company reported record profits in the fourth quarter of 2023, driven by T-Bill investments.
Despite its financial success, Tether has faced scrutiny over the quality of assets backing USDT. The company has taken steps to reduce exposure to riskier assets but has yet to fulfill its pledge to cease lending from reserves by the end of 2023.
Over half of the USDT supply resides on the Tron blockchain, which has drawn criticism from a United Nations report citing concerns about cyber fraud. Tether has refuted these claims, highlighting its collaboration with law enforcement and the traceability of its token.
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