Tether, a popular stablecoin in the cryptocurrency market, has achieved a significant milestone by surpassing a market capitalization of over $115 billion. This milestone was announced by CEO Paolo Ardoino in a recent post, highlighting the dominance of Tether’s USDT in the stablecoin market, where it has held a market share of over 70% for almost a year.
The recent growth in USDT’s market cap by over $1 billion in just a week coincided with the rise in Bitcoin’s price to $60,200. This surge in market cap demonstrates the mainstream adoption of USDT as a reliable digital asset that maintains a stable value, unlike the more volatile cryptocurrencies such as Bitcoin.
Ardoino emphasized that USDT’s increasing market cap signifies its role as the “digital dollar of choice” for various transactions and use cases beyond just cryptocurrency trading. The stablecoin is now being utilized as an alternative to traditional savings and checking accounts, especially in emerging markets facing currency devaluation issues.
The chart below shows Tether’s remarkable growth over the past year, with its market cap expanding by more than 40% since September 2023. This stability and growth have made USDT a preferred option for trading and storing value in the crypto market, showcasing the rising importance of stablecoins in the broader financial system.
Recently, blockchain analyst Lookonchain reported that a significant amount of USDT worth $1.3 billion was transferred to centralized exchanges like Kraken, OKX, and Coinbase during a general uptrend in the crypto market. Tether’s transparency data indicates that more than 90% of USDT’s supply is circulating on the Tron and Ethereum networks.
Despite its growth and popularity, Tether has faced scrutiny regarding the potential misuse of USDT by sanctioned entities and for illicit activities. Concerns have been raised by traditional financial institutions about the impact on Tether’s supply if the demand for cryptocurrencies weakens.
To address these concerns, Tether has partnered with Chainalysis to monitor USDT activity on secondary markets, aiming to enhance transparency and security by identifying wallets associated with illicit activities or sanctioned addresses.
In a recent development, Tether announced a partnership to promote blockchain education at five universities in the Ivory Coast. Through its Tether Edu unit, the company will support programs focused on blockchain technology, cryptocurrencies, and smart contracts to equip students with practical skills relevant to various sectors such as healthcare, finance, digital identity, and supply chain management.
Overall, Tether’s achievement of surpassing a $115 billion market cap underscores its growing influence and acceptance in the cryptocurrency market, signaling a shift towards the mainstream adoption of stablecoins for diverse financial transactions and use cases.