Thomas Daniels
Tether’s stablecoin, USDT, has reached a significant milestone, with its market capitalization surpassing $115 billion. This achievement, announced in a cryptic X post by Tether’s CEO Paolo Ardoino, underscores USDT’s dominant position in the stablecoin market, where it has maintained a market share of over 70% for nearly a year.
In the past week alone, USDT’s market cap increased by over $1 billion, coinciding with Bitcoin’s rebound to a current price of $60,200. The $115 billion market cap milestone is a clear indicator of USDT’s widespread acceptance, reflecting the trust that users place in this stablecoin to maintain a stable value amidst the volatility often associated with cryptocurrencies like Bitcoin.
“USDT’s recent surge to a $115 billion market cap underscores its increasing adoption as the ‘digital dollar of choice’ for a wide range of transactions and use cases beyond just cryptocurrency trading,” Ardoino stated in a release to crypto.news. He emphasized a noticeable shift in how digital assets are being utilized, with USDT increasingly serving as an alternative to traditional banking in emerging markets facing currency devaluation.
Tether’s growth has been particularly pronounced over the last year, with its market cap increasing by over 40% since September 2023. This rapid expansion highlights the growing role of stablecoins in bridging traditional finance and digital currencies, offering a stable and reliable medium for trading and value storage in the crypto market.
Recent data from blockchain analyst Lookonchain reported that $1.3 billion worth of USDT was transferred to centralized exchanges such as Kraken, OKX, and Coinbase, signaling continued investor confidence amid a broader crypto market uptrend. Additionally, Tether’s transparency page reveals that over 90% of USDT’s supply is circulating on the Tron and Ethereum networks.
However, Tether’s expansion has not been without scrutiny. The company has faced criticism over potential misuse of USDT by sanctioned entities and for illicit activities. In response, Tether has partnered with blockchain analytics firm Chainalysis to monitor USDT transactions on secondary markets, enhancing transparency and security by identifying wallets linked to illicit activities or sanctioned addresses.
In addition to its market developments, Tether has recently launched an educational initiative in Africa. Through its Tether Edu unit, the company has partnered with five universities in the Ivory Coast, including Université Félix Houphouët-Boigny and Institut National Polytechnique Félix Houphouët-Boigny. This initiative aims to promote blockchain education, focusing on practical applications in sectors such as healthcare, finance, digital identity, and supply chain management.
