The market capitalization of Tether’s USDT has surpassed the previous all-time high of $83.2 billion, according to a statement from the stablecoin issuer on June 1.
Data from Dfilama showed that nearly half of the USDT supply, 42.86 billion, is on the Tron blockchain, while 33.37 billion of it is on Ethereum.
There is also a large supply of stablecoins on other blockchain networks such as Binance Smart Chain, Polygon, Solana, Avalanche, and others.
Tether’s transparency data for June previously showed total assets of $85.6 billion and liabilities of $83.2 billion, with a liquidity cushion of $2.4 billion.
Tether growth in 2023
Tether’s USDT has enjoyed significant growth in the current year, adding almost $17 billion to its market cap. During that period, its market dominance also reached a two-year high of 64.45%, according to data from Defilama.
In 2023, Tether reported a strong first quarter and intends to invest its profits in bitcoin. Additionally, the crypto firm expanded its business into BTC mining, and its USDT stablecoin was integrated into digital payments platform Strike.
Tether’s CTO Paolo Ardoino said the firm’s growth is a testament to its “battle-tested resilience in the face of market volatility and our industry-leading transparency practices.”
Concerns remain about USDT
Meanwhile, the algorithmic stablecoin explosion of Terra and the subsequent collapse of several crypto-related firms last year has brought more regulatory attention to Tether.
Several media reports have highlighted issues with its opaque reserves, and some hedge funds have been betting on its possible collapse.
Most recently, John Reed Stark, a former SEC official, described the firm as a “huge house of cards” and urged regulators to ban it. According to Stark, the stablecoin issuer operates in a regulatory vacuum, adding that its quarterly verification is no substitute for an audit.
Tether’s success is more apparent when looking at the regulatory turmoil that has hit its major rivals such as Binance USD (BUSD) and USD Coin (USDC).
However, Tether has consistently maintained that it poses no risk to the collapsed crypto firms and has touted its business practices.
Update June 1st: The headline was changed to be more specific about market cap.
Posted in: Featured, Stablecoins on CryptoSlate Author Oluwapelumi Adejumo Journalist
Oluvapelumi values the potential of bitcoin. He provides insight on a range of topics such as DeFi, hacks, mining and culture, underlining its transformative power.
Editor Jacob Oliver Editor at Crypto Slate
Jacob Oliver is a recovering academic and English teacher who went down the crypto rabbit hole in 2017 after recognizing the potential of the technology.
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