Tether’s marketcap reaches new milestone of $90b
The market capitalization of Tether‘s stablecoin USDT has surpassed $90 billion.
This indicates strong investor demand for stablecoins and the growth of their use in the digital economy. USDT currently accounts for about 70% of the stablecoin market. The market capitalization of competing coins, meanwhile, continues to decline.
Tether’s dominance is further emphasized by its trading volumes. As Rob Hudik, general partner at Dragonfly notes, USDT trading volumes are nine times higher than USDC trading volumes, which he believes indicates that the tokens are simply being used for different purposes.
Traders outside of regulated US/UK and emerging markets prefer USDT, while American companies choose USDC.
As shown in the chart above, in July 2023, Tether’s capitalization increased by 36%. At the same time, the market value of USDC fell below $27 billion, which was a 5-month low. The previously ranked third stablecoin BUSD lost its appeal after being delisted from Binance, losing ground to DAI and TrueUSD.
Earlier, analysts said that in November 2023, the capitalization of the stablecoin sector grew by more than 3% – from $120 billion to $124.05. The first sustained upward jump in the indicator since April-May 2022. At the same time, not only the capitalization of the asset increased, but also the number of its large holders.
