Tether’s Market Cap Hits Historic $100 Billion as USDT Leads the Stablecoin Race

Today marks a monumental achievement for Tether’s USDT stablecoin as its market capitalization has surpassed the $100 billion threshold, establishing a new record in the digital currency sphere. This milestone makes USDT the pioneer stablecoin to reach such an expansive scale, showcasing a growth exceeding 9% since the year’s start. This uptick is primarily attributed to the heightened demand for Bitcoin, which today soared to $66,000, a price not seen since November 2021, solidifying Tether’s status as the globe’s most traded cryptocurrency.

CoinGecko data indicates that USDT’s circulation zenith touched $100.2 billion at around 8:10 a.m. GMT on Monday, though it slightly receded to nearly $99.6 billion later. There was also an instance when the token’s value momentarily surpassed the $1 mark. Efforts to elicit responses from Tether officials have yet to yield results.

Tether’s financial disclosure in January highlighted that its reserves backing the USDT increased to $97 billion in December, with a substantial portion, over 76%, being in short-term U.S. Treasury bills. The bolstered returns from these securities have significantly propelled Tether’s earnings in the past year.

In a strategic move last December, Tether announced it had an excess of $2.85 billion earmarked for investments in various sectors, including industry research and Bitcoin mining. Aiming to deepen its investment in these domains in 2024, Tether’s CEO, Paolo Ardoino, disclosed plans in November to allocate around $500 million specifically to Bitcoin mining ventures.

Commanding a 70% share of the stablecoin market, Tether towers over its closest rival, Circle’s USDC, which holds a 19% market share. Circle’s head of Policy and Regulation highlighted concerns regarding Tether at a recent House Financial Services Committee hearing, urging Congress to enforce stricter regulations on the leading stablecoin issuer.

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