USDT, the stablecoin pegged to the US dollar and issued by Tether, has reached and exceeded an impressive market value of over $100 billion, establishing its dominance within the stablecoin industry.
On March 4, 2024, USDT experienced a notable increase in value as evidenced by CoinGecko’s data.
Tether’s market value has grown by an impressive 9% year-to-date, widening its lead over its closest competitor, USD Coin (USDC), which is also experiencing growth.
Tether’s market valuation now aligns it with some of the world’s leading companies
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With a market capitalization of over $100 billion, Tether has become a significant force within the digital currency space and traditional financial markets.
The significant increase in the crypto market’s aggregate value, surpassing $2 trillion, has boosted USDT.
Today the price of $BONK has increased by more than 50%!
A SmartMoney accumulated 98B $BONK($1.54M) from #Binance again before the price increased.
He currently holds 319.44B $BONK($7M), with a profit of $2.9M.https://t.co/1oXGa1QlKp pic.twitter.com/TXYw2H07yz
— Lookonchain (@lookonchain) February 29, 2024
The value of Bitcoin has surged by around 50% and is now at heights not reached in two years of passage.
Tether reported record quarterly profits for Q4 2023, with significant revenues generated from yield-bearing U.S. Treasury Bills (T-Bills).
Doubt Cast and what Tether is doing About It
Tether has faced criticism regarding its reserves and their authenticity, but efforts have been made by the company to alleviate fears by decreasing involvement with volatile assets.
By 2024, the corporation promised to stop drawing from its financial reserves for loans, boosting the clarity of its monetary dealings.
Approximately 60% of the total USDT supply can be found on the Tron network, which is under scrutiny for its association with illegal transactions in Southeast Asian regions.
The company’s defense against criticism revolves around its collaboration with law enforcement agencies and the capability to monitor digital token transactions.
By the close of 2024, the corporation intends to phase out its reserve lending program, but it held approximately $4.8 billion in such loans after 2023.
Amidst the evolving terrain of digital finance, Tether’s accomplishments and obstacles in merging cryptocurrency with traditional banking systems remain a source of intrigue.
The USDT stablecoin’s milestone is a testament to its resilience and growing importance within the crypto ecosystem.
As market demand for liquidity rises, USDT serves as a valuable tool for traders seeking stability in an increasingly volatile market. With a third-place ranking in market capitalization, this cryptocurrency plays a crucial role within the crypto market.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
— Paolo Ardoino 🍐 (@paoloardoino) March 3, 2024
The journey to this milestone began with Tether’s initial issuance of USDT back in 2014, when it was introduced as “realcoin” on the Bitcoin network.
From its humble beginnings, Tether has seen substantial growth and now offers a range of stablecoin options pegged to gold and various currencies across diverse blockchain networks.
During the bull market that spanned from late 2020 to early 2021, USDT underwent a significant increase in worth, jumping from $4 billion to an impressive $83 billion within the span of twelve months.
According to Tether, over 90% of its reserves are safe assets like US Treasury bonds, repo agreements, and money market fund deposits.
USDT’s dominance in the stablecoin sector now exceeds 70% of the total $140 billion market pie.
The company has also reported record profits, with over $2.85 billion earned during Q4 2023, primarily from yields on its substantial U.S. Treasuries holdings.
USDT’s growth trajectory is expected to continue as it capitalizes on the expanding crypto trading market and increasing demand for liquidity.
The stablecoin’s milestone marks a significant achievement in the history of digital currencies, underscoring its importance in bridging the gap between traditional finance and blockchain-based markets.
USDT is poised to play an increasingly influential role in the future of finance and digital assets.