Tether (USDT) Dominates Stablecoin Market with 71% Share as Market Cap Soars to Record $95 Billion

Tether, the company behind the popular stablecoin USDT, has seen its market share in the stablecoin sector rise from 50% to an astonishing 71% over the course of 2023, according to data from CoinGecko. The latest development in Tether’s meteoric rise came on the evening of January 12, when the company printed an additional $1 billion, propelling the market capitalization of USDT to a new record, exceeding $95 billion within just one year. This figure even surpasses the GDPs of nations such as Guatemala and Bulgaria.

Tether’s closest competitor, Circle, which oversees the USDC stablecoin, recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). However, despite this move, Circle holds only 27 billion tokens in circulation, starting 2023 with a total of 48 billion USDC. This pales in comparison to Tether’s dominant position in the market.

Stablecoins by Market Capitalization | Source: Coingecko

Moreover, Tether’s strategic profit allocation has extended beyond stablecoins. The company’s Bitcoin investment portfolio is currently valued at around $3 billion as of January 4, 2024, proving to be a substantial source of profit for the company.

Tether has also undergone significant internal personnel changes. The longtime Chief Technology Officer (CTO), Paolo Ardoino, was promoted to the position of CEO, succeeding Jean-Louis van der Velde at the end of the past year. Since taking on his new role, Ardoino has been actively working to strengthen ties with U.S. law enforcement agencies. This effort is evident through multiple instances of collaboration involving the freezing of wallets associated with the U.S. Office of Foreign Assets Control’s (OFAC) sanctions list, resulting in the seizure of over $435 million in illicit funds.

Ardoino’s proactive approach aligns with Tether’s commitment to compliance and regulatory standards, especially in a market where stablecoins are facing increasing scrutiny from global regulatory bodies. As Tether continues to dominate the stablecoin landscape, its growing market cap and strategic initiatives are positioning the company as a major player in the evolving landscape of digital finance.

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