- USDT supply has grown 10% year-to-date reaching its 10-month high with a market capitalization of $75 billion.
- Over the past 30 days, Tether’s currency has grown by approximately $5 billion while its competition has fallen.
- Tether has a 56.4% dominance in the stablecoin market.
The crypto ecosystem is in a moment of high tension. While Bitcoin and the rest of the big cryptocurrencies grow, reaching highs during the last 90 days, another part of the sector laments. The major stablecoins are losing their battle to Tether, which promises to make USDT ever stronger.
According to the data shown by the site CryptoSlate, USDT supply has grown 10% year-to-date and thus reached a 10-month high – market capitalization is $75 billion. A similar number has not been seen since May 2022, when BTC hovered around $38,000 and ETH was in the $2,800 range.
Tether gets stronger
Over the past 30 days, Tether’s currency has grown by approximately $5 billion while its competition has fallen. Binance USD (BUSD) lost ground after Paxos announced that it will no longer issue coins starting February 21, while UDS Coin (USDC) and DAI were compromised by the Silicon Valley Bank (SVB) bankruptcy scandal.
With a capitalization of $75 billion, USDT remains the third most valuable cryptocurrency on the market. It leads its category, which has nine assets in the top 100: USDC (36 billion), BUSD (8), DAI (6), True USD (2), Pax Dollar (876 million), USDD (720), Gemini Dollar (600) and Fei USD (422).
Regarding market dominance, Tether is at 56.4%, making it its highest point since July 2021, before Bitcoin reached its all-time high. This means that More than half of the stablecoins that are traded on the market belong to the company Tether Limited.
Tether builds trust
Tether’s growth is based on the “trust” of its investors, and not only in retailers, but also in wholesalers. Blockchain analyst firm Santiment reported that over the past 12 months it has seen eight transactions of at least $1 billion, all in USDT..
Half of these occurred over the past few days, when the whales “moved their USDT holdings off crypto exchanges following the collapse of crypto-friendly banks,” the aforementioned site stressed.
At the same time, this company assured that the offer of Tether in centralized exchanges is at a minimum, having lost more than 28.9% in the last 10 months. Where did the coins go? To cold wallets that wait for the right moment to make their investments.
Tether, which today appears to be the “most reliable stablecoin” has received severe criticism in the past and the situation has been reversed with many taking refuge in BUSD and USDC. Those same ones are already back and with UDST in their pockets.
Before the bankruptcy of Silicon Valley Bank, it was quickly highlighted in many media outlets that in addition to USD Coin, Tether also had committed funds. The company’s technology director, Paolo Ardoino, came out to deny these comments and assured that the coverage on this aforementioned topic was “outdated, inaccurate and misleading.”
It is worth highlighting the importance of stable currencies within the cryptographic ecosystem: these allow international payments (remittances, for example) to be made without the uncertainty of price variations. If one were to receive a payment of $1,000 in BTC, at the time of cashing it out this could be more (if it increased) or less (if it fell). Stablecoins leave this situation out of the question.
Monopolies, as history has shown, are not a sign of good health, so it will be important for a competitor to emerge or re-emerge that can stand up to USDT, which is becoming stronger.
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