- Tether’s market capitalization has skyrocketed, and competitors in the DeFi space have been feeling the heat.
- USDT’s market cap has showcased its exceptional growth since the year’s inception.
- Tether’s dominance has intensified, creating an intriguing and dynamic stablecoin landscape.
Tether (USDT), the leading stablecoin, is witnessing an unprecedented surge in market capitalization, soaring to new all-time highs following a remarkable profit generation by its parent company earlier this year.
USDT Nears $84 Billion Market Cap with 30% Supply Growth
According to analytics firm IntoTheBlock, the market cap of USDT is rapidly closing in on the staggering $84 billion mark, an impressive rise from its starting point of $66 billion at the beginning of the year. This significant growth in market capitalization has been accompanied by a substantial increase of nearly 30% in Tether’s circulating supply since the start of the year.
As of the time of writing, the market cap of USDT stands at a remarkable $83.82 billion, reflecting the strong momentum of this stablecoin in the market.
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IntoTheBlock’s analysis further unveils that Tether’s success has translated into substantial profits, with the stablecoin issuer printing an impressive $1.5 billion in net profits in the first quarter of 2023.
Rising USDT Dominance Shakes Up the DeFi Competitors
This remarkable performance has led to optimistic predictions that the stablecoin will continue to witness increased income in the current quarter, bolstered by the continued growth of USDT in circulation.
The growing dominance of USDT is not going unnoticed by its competitors, especially those operating within the decentralized finance (DeFi) space. Competitors are diligently working on enhancements to entice more platform users.
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In particular, USD Coin (USDC), the second-largest stablecoin by market cap, has faced challenges recently due to the unfortunate collapse of Silicon Valley Bank (SVB) in March. Circle, the firm behind USDC, had deposited a substantial $3.3 billion with SVB, and this incident has undoubtedly impacted USDC’s performance.
On the Flipside
- Tether’s impressive market capitalization surge is not solely attributed to its performance but is compounded by the market’s lackluster performances of other stablecoins.
- The dominance of Tether in the stablecoin sector might lead to a centralization concern as competitors within DeFi struggle to attract users in the face of its overwhelming market share.
Why This Matters
As one of the top stablecoins, Tether’s continued growth is likely to reinforce its position as a crucial player in the crypto market, shaping the dynamics of digital asset trading and fostering confidence in the stability of the broader crypto ecosystem.
To learn more about the recent Bitcoin options expiry and its impact on volatility, read here:
Curious about the latest development in stablecoin regulations? Find out how the US House passed the bill amid bipartisan tension:
US House’s Stablecoin Regulation Bill Passes Despite Bipartisan Tension
