Tether (USDT) stablecoin supply has reached an unprecedented milestone, surpassing $84 billion for the first time.
Dates of CryptoSlate shows that USDT’s market capitalization has increased by approximately $1 billion over the past seven days, amid the current market rally, fueled by optimism surrounding the possibility of a Bitcoin (BTC) spot exchange-traded fund (ETF).
Tether CEO Paolo Ardoino marked the milestone with a concise “84B $USDt” post on social media platform
USDT faced significant challenges last year as its market capitalization fell to $66 billion amid a severe market downturn and the collapse of crypto firms such as FTX and Three Arrows Capital. During this period, questions arose about the stability of reserves, with concerns that they could be vulnerable to the wider market turmoil.
Why Tether Supply Is Rising
However, Tether has weathered this storm and managed to increase its token supply by approximately $18 billion this year. This growth can be attributed to the current favorable market environment and the problems faced by its rivals, including Binance USD (BUSD) and USD Coin (USDC).
Earlier this year, the New York Department of Financial Services (NYDFS) ordered BUSD issuer Paxos to stop additional minting of the stablecoin. Later, the US Securities and Exchange Commission (SEC) classified BUSD as a security in its lawsuit against Binance.
As a result, many crypto investors turned away from BUSD, causing its supply to plummet from its peak of $22 billion in November 2022 to around $2 billion at the time of writing.
Conversely, USDC encountered problems in March when it emerged that the company was exposed to the US banking crisis.
The issuer, Circle, announced that it was holding some of the USDC reserves at the now-bankrupt crypto-friendly bank, Silicon Valley Bank. Following this revelation, the USDC briefly fell to a low of $0.87 before recovering.
However, its circulation has steadily declined despite improving market conditions.
These events helped propel USDT to the forefront of the market, with its market dominance now rising to nearly 70%, DeFillama said. facts.
Post-Tether Supply Hits an Unprecedented $84 Billion Amid ETF-Driven Bitcoin Rally, appeared first on CryptoSlate.