Tether’s USDT, the largest stablecoin, continues to grow and further solidify its dominance in the market.
According to BeinCrypto data, USDT’s market capitalization is approaching $120 billion for the first time.
Tether USDT Approaches $120 Billion
Earlier this week, Tether minted $1 billion worth of USDT on the Ethereum blockchain, bringing its market cap to $119 billion. Blockchain platform SpotOnChain revealed that Tether has minted $35 billion worth of USDT in the past year.
This growth cements USDT as the largest stablecoin. Notably, Circle’s USDC, USDT’s closest competitor, remains significantly smaller, holding less than one-third of Tether’s market share.
As of Q2 2024, Tether holds over $97 billion in US Treasuries and repurchase agreements. This makes the firm the 18th largest holder of US Treasuries in the world, surpassing countries such as Germany, the UAE, and Australia.
Read more: A Guide to the Best Stablecoins in 2024
Stablecoins are one of the most practical crypto applications in the real world, offering a stable alternative to volatile digital assets. These assets have gained significant adoption in emerging markets like Nigeria where they increasingly rely on them for savings, payments, and cross-border transactions.
Notably, this has boosted Tether’s adoption considerably, with the USDT stablecoin having more than 350 million users globally. The high adoption has helped the firm’s business model, which has proven significantly profitable, netting more than $400 million during the last 30 days, according to Token Terminal data.
Meanwhile, Tether has expanded into sectors like agriculture and restructured its operations into four divisions, including finance, data, education, and power. This diversification supports the company’s efforts to boost USDT distribution and invest in ventures like AI and Bitcoin mining.
Read more: 9 Best Crypto Wallets to Store Tether (USDT)
Despite its growth, Tether has faced criticism. Consumers’ Research has raised concerns about the risks posed by Tether’s business model, citing potential exposure to significant user risks. Also, several market observers have raised alarms over the firm’s reserves.
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