In the world of cryptocurrencies, truths pass more quickly than anywhere else. Stablecoin Tether (USDT), despite a volatile regulatory atmosphere, records another historic success. The capitalization of the largest stablecoin in the cryptocurrency market not only rose to unprecedented levels but also solidified its dominance over the competition. Here’s how USDT, navigating through the unstable waters of the digital economy, achieved new record values.
Recently, Tether (USDT), the most popular stablecoin pegged to the US dollar, crossed another milestone, setting a new market capitalization record. This digital financial instrument, which bases its stability on parity with the world’s most recognized currency – the dollar – gains in value, despite an uncertain regulatory climate that does not shy away from criticism and suspicion.
November 8, 2023, will be inscribed in the annals of digital economy history as the moment when Tether Limited increased the capitalization of its flagship product by over 300 million dollars, reaching a value of 86.12 billion dollars – data according to CoinMarketCap testify to this growth dynamic.
Looking back over the past 12 months, we can observe that the mentioned metric has grown by almost 23 percent. In June 2023, Tether returned to values not seen since the collapse of cryptocurrency markets in 2022. Since mid-October of this year, its capitalization has increased at an even faster pace.
The dominance of USDT in the stablecoin segment has become undeniable. It surpasses its closest rival, USDC offered by Circle, by an impressive 153 percent. USDC’s capitalization is currently 24 billion dollars, which represents a decrease of almost 56.3 percent compared to record values from the second quarter of 2022.
The third-largest asset in this category, Dai (DAI), which is the most capitalized algorithmic (decentralized) stablecoin, maintains a supply of 5.34 billion dollars. Tether – as a “centralized stablecoin” – is backed by a diversified portfolio of assets. According to the certificate of status for the third quarter of 2023, US Treasury bills (T-bills) make up the lion’s share of this portfolio. Currently, Tether holds Treasury bills totaling 72.6 billion dollars, making its exposure to US debt even more impressive than most countries, including the Netherlands (72.3 billion dollars) and the United Arab Emirates (64.9 billion dollars).
In the context of recent actions, Tether (USDT) is also focusing on software for Bitcoin (BTC) mining in 2023. In October, Tether’s CEO, Paolo Ardoino, presented Moria – a next-generation Bitcoin mining orchestration tool. This move may signal an expansion of the company’s strategy beyond the traditional scope of stablecoins.
It becomes clear that Tether not only maintains its positions but also strengthens them, adapting to the constantly changing cryptocurrency environment. Despite many challenges, the stability and growth in USDT’s value may be a sign of growing investor confidence in this form of digital assets and their potential in shaping the financial reality of the future.
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