Tether’s USDT has made crypto history by reaching a $100 billion market cap, showing its widening influence on the stablecoin market. USDT has grown by a substantial 9% since the start of the year.
Stablecoins are cryptocurrencies pegged to the value of a fiat currency, such as the US dollar. However, USDT has retained most of the sector’s market share and is the most widely used stablecoin.
USDT Hits $100 Billion, Leads Stablecoin Market
Tether has a market capitalization of about $71 billion more than USDC, demonstrating its supremacy in the stablecoin industry. This puts Tether’s market capitalization in the same ballpark as large enterprises like the e-commerce platform Shopify and the British oil and gas business BP.
Source: Coingecko
Tether is also the third-largest cryptocurrency by market cap and is seen as a more desirable option for savings and remittances. In addition, Tether operates on fourteen blockchains and protocols. It is also a preferred option for investors looking for a reliable asset during high volatility.
So, Tether claims its reserves are mostly in the form of yield-bearing U.S. Treasury Bills (T-Bills). And backs each USDT token 1:1. There have been concerns about Tether’s commitment to transparency in previous months. However, the stablecoin issuer announced a record-breaking $2.85 billion quarterly profit in Q4-2023. Interestingly, about $1 billion came from its T-Bills assets.
BREAKING:
Tether USDT just hit $100b in market cap for the first time.
— Whalefud Capital (@WhaleFUD) March 4, 2024
The stablecoin market has also recorded significant progress recently, surging by $3.26 billion in its market cap in the last eight days. This growth also coincides with the increased supply of notable stablecoins, such as USDC and DAI.
Bitcoin Continues its Upward Climb
The larger cryptocurrency market has also begun to rebound. In the past month, its entire market capitalization has surpassed $2 trillion. Bitcoin’s price recently hit a multi-year high of $65,000. This surpassed the previous record set against the euro. Bitcoin reached a record-breaking value of 60,000 euros on March 4.
HISTORY: #Bitcoin just set a new all-time high market capitalization above $1.3 TRILLION 💫 pic.twitter.com/7KGXPpyaLt
— Rizzo (@pete_rizzo_) March 4, 2024
Trading at $65,000 means Bitcoin is only a few steps away from its all-time high of $69,000 recorded in November 2021. However, Bitcoin’s recent surge makes it likely that that foremost cryptocurrency could set a new record in a matter of weeks.
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