Tether USDT Market Cap Hits $75 Billion, Dominating Stablecoin Market Share at 56.4%
Tether (USDT), the controversial stablecoin that has been subject to scrutiny by regulators and investors alike, has seen a surge in its market capitalization over the past 10 months. According to data from CoinMarketCap, the USDT market cap has reached a record high of $75 billion, up 10% from the previous month.
The surge in USDT’s market cap comes at a time when other stablecoins, such as Binance USD (BUSD) and USD Coin (USDC), have been facing regulatory and banking issues. This has led investors to seek out the relative stability of USDT, which has been able to weather the storm in the cryptocurrency markets.
USDC, BUSD and DAI market caps have all declined in the past month, while USDT has seen a $5 billion increase in market cap. USDT’s stablecoin market share has also reached its highest level since July 2021, currently standing at 56.4%. The current total market value of stablecoins is around $134.5 billion, with USDT, USDC, BUSD, DAI, and TUSD accounting for the majority of this value.
Santiment, a blockchain analytics firm, has revealed that large-scale tether transactions have also increased. According to Santiment, there have been eight Tether transactions worth $1 billion or more over the past year, with half of them occurring in the past 10 days.
Large investors have been pulling their USDT holdings from exchanges in response to the collapse of crypto-friendly banks. This has led to a decrease in the amount of Tether circulation remaining on exchanges, which is now at a 10-month low, down 28.9%. This decrease in circulation on exchanges is seen as a positive sign by investors, as it indicates that they are holding onto their USDT holdings for the long term.
Overall, the surge in USDT’s market capitalization is a positive sign for the cryptocurrency market, as it indicates that investors are seeking out stability amidst the volatility of the market. However, the controversial nature of USDT, which has faced accusations of being backed by insufficient reserves, will likely continue to be a source of concern for regulators and investors alike.
Read more:
- Tether Issues 2 Billion USDT, Market Watches Closely For Potential Impact
- Stablecoin Market Value Hits $136.5 Billion With USDT Leading The Way