- The current market cap of Tether is 50 billion dollars.
- From March 2020 to March 2021, Tether’s market cap has grown 900 percent.
- USDT outclasses USDC, the second-largest stablecoin by market cap, by a margin of over $39 billion.
The increasing market for stablecoins has led to an upsurge in the number of new stablecoins entering the market. Yet, Tether continues to grow like no other stablecoins. The current bull run of the cryptocurrency market is in full swing helping Tether (USDT) hit the market capitalization of 50 billion dollars on Monday. It means that 50 billion USDT are in circulation, the highest ever figure for Tether.
These figures indicate an almost tenfold rise in the market cap of USDT and that too just in one year. Interestingly this stat also shows us a staggering growth of 25 percent in just over a month.
Tether’s Role in Growing Market of Stablecoins
Tether was the first stablecoin in the market, which helped it become the most recognized stablecoin in the crypto industry. Being the first stablecoin in the market led to increasing demand for Tether. It resulted in the skyrocketing market cap of the Tether cryptocurrency. Thus, Tether became the most liquid stablecoin in the market. High liquidity cemented its position in the stablecoin space.
We can also infer the dominance of Tether from its market share in the stablecoin space. Holding roughly 66.1 percent of the stable coin market, USDT leads the tally when it comes to the largest stablecoins in circulation today. USD Coin is the second-largest stablecoin, and it’s nowhere near the market cap of USDT. Its value is just $10.7 billion.
Concerns About Tether’s USD Reserves
There were some concerns regarding its dollar reserves in the past, which created fear, uncertainty, and doubt. But these fears were led to rest by a report from Moore Islands-based Moore Cayman. The report made it clear that every USDT in circulation is fully backed by US dollar reserves. Thus, Tether plays a pivotal role in the digital token ecosystem and across a myriad of protocols and applications.
There has also been an increase in regulatory scrutiny of Tether’s reserve for some time now. For instance, the Office of the New York Attorney General (NYAG) has been conducting an inquiry on Tether and Bitfinex since April 2019.
Recently, Tether has agreed to file a quarterly report to NYDAG after an $18.5 million settlement. In its quarterly report, Tether will submit proof of its USD reserves in the quarterly report for the next two years. Such regulatory scrutiny of its USD reserves will make people trust Tether even more, which will help Tether remain the go-to stablecoin for the masses.