Tether’s USDT, the largest stablecoin, continues to grow and further solidify its market dominance.
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, giving it a market cap of $119 billion. Blockchain platform SpotOnChain revealed that Tether has minted $35 billion worth of USDT in the past year.
This growth positions USDT as the largest stablecoin. Notably, USDT’s closest competitor, Circle’s USDC, remains significantly smaller, holding less than a third of Tether’s market share.
Tether tokens in circulation. Source: Tether
As of Q2 2024, Tether holds over $97 billion in U.S. Treasuries and repurchase contracts. This makes the company the 18th largest holder of U.S. debt in the world, surpassing Germany, the United Arab Emirates and Australia.
Read more: A guide to the best stablecoins of 2024
Stablecoins are one of the most practical crypto applications in the real world, providing a stable alternative to volatile digital assets. These assets have been significantly adopted in emerging markets like Nigeria, which increasingly rely on savings, payments and cross-border transactions.
Notably, this has significantly boosted Tether’s adoption, with the USDT stablecoin now having over 350 million users worldwide. High adoption rates have helped the company’s business model, which has generated significant revenue, with more than $400 million in profits in the past 30 days, according to Token Terminal data.
Meanwhile, Tether expanded into areas such as agriculture and reorganized its business into four segments: finance, data, education, and power. This diversification supports the company’s efforts to promote USDT circulation and invest in ventures such as 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, saying it could expose users to significant risks. Additionally, several market participants are sounding the alarm over the company’s reserves.
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