Tether’s market capitalization has reached an all-time high. The value of USDT surged 40.68% to $119.14 billion.
Over the past year, stablecoins have experienced exponential growth. The stablecoin market capitalization recently reached a historic high of $172.151 billion.
Tether hits new all-time high
Amidst the growth of the stablecoin market, Tether’s USDT is leading the way and recording sustained growth. In fact, Tether’s market capitalization has reached an all-time high.
This development in the stablecoin market was observed by IntoTheBlock. Through the official X page, they shared:
“Tether’s market cap has reached an all-time high, with USDT total approaching $120 billion.”
Source: Into the Block
As of this writing, Tether’s market capitalization was $119.14 billion. This has registered a growth of 40.68% over the past year. During this period, Tether’s market capitalization jumped from $84.69 billion to $119 billion.
This growth rate is $83.3 billion higher than the market capitalization of its closest stablecoin rival, Circle, USDC, which has also grown significantly over the past year to reach $35 billion.
What is driving USDT’s growth?
As Tether’s USDT hits new market capitalization highs, the question arises: What factors are driving this growth?
According to AMBCrypto analysis, various market conditions are driving further growth for Tether.
Source: Into the Block
First of all, Tether’s adoption rate has skyrocketed over the past year. Over this period, adoption increased from a low of 18% to 31%.
This suggests that a variety of individuals, institutions, and retail traders prefer USDT over other stablecoins. This popularity among users has enabled Tether to achieve further growth.
Source: Defilama
Furthermore, while the stablecoin market is diverse with multiple coins, USDT stands out as a trading pair. This is demonstrated by its high dominance over other stablecoins.
According to Defillama, USDT’s advantage reached 69.22%. This suggests that higher dominance means more liquidity in the market, as USDT is widely used for trading pairs on exchanges.
Source: Cryptocurrency
Finally, USDT has seen a surge in reserve exchanges over the past year as its market capitalization has expanded. This indicates increasing usage and adoption, as previously observed.
The availability of USDT on exchanges suggests that most users use it for purchases and other trading activities compared to other stablecoins.
In conclusion, we see an increasing preference for USDT in trading activity as Tether’s market capitalization reaches historic highs. This also means that the market is moving towards stablecoins as a store of value for most cryptocurrency users.
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