USDT Hits New ATH: Surges Over $86 Million in Market Cap, a 23% Yearly Boost
Tether Limited has witnessed a staggering increase in the market capitalization of its flagship stablecoin, USDT, soaring above $86 million today, as reported by CoinMarketCap. This significant surge represents a remarkable 23% growth over the past year, marking a resurgence for the stablecoin after a brief decline in late Q4, 2022.
The momentum gained by USDT has been particularly evident in the last 12 months, with a noteworthy recovery since June 2023, reaching levels not seen since the crypto market collapse of 2022. The pace of growth accelerated notably in mid-October 2023, signifying a robust performance in the volatile cryptocurrency landscape.
What makes this surge even more remarkable is the clear dominance of USDT in the stablecoin market. Surpassing its closest competitor, USDC, by an impressive 153%, USDT now stands as the undisputed leader in stablecoin capitalization. USDC, the second-largest stablecoin, lags behind with a capitalization of $24 billion, a significant 56.3% decrease from its all-time high in Q2, 2022.
Taking the third spot in the stablecoin hierarchy is Dai (DAI), the most capitalized algorithmic and decentralized stablecoin, with a supply totaling $5.34 billion in equivalent.
A noteworthy aspect of USDT’s success lies in its centralized nature, backed by a diversified portfolio of assets. According to the Q3, 2023, attestation document, U.S. Treasury bills play a pivotal role in supporting USDT, contributing a substantial $72.6 billion to its portfolio. This exposure to U.S. debt surpasses that of many countries, including the Netherlands ($72.3 billion) and the United Arab Emirates ($64.9 billion), underscoring the stablecoin’s robust financial backing.
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