Tether’s (USDT) stablecoin provide has reached an unprecedented milestone, surpassing $84 billion for the primary time.
Information from CryptoSlate reveals that USDT market capitalization has elevated by round $1 billion over the last seven days amid the present market rally fueled by optimism surrounding the potential for a Bitcoin (BTC) spot exchange-traded fund (ETF).
Tether’s CEO Paolo Ardoino marked the milestone with a terse “84B $USDt” submit on social media platform X.
USDT confronted important challenges final yr as its market capitalization dropped to $66 billion amidst a extreme market downturn and the collapse of crypto corporations resembling FTX and Three Arrows Capital. Throughout this era, questions arose in regards to the stability of its reserves, with concerns that it may be susceptible to the broader market turmoil.
Why Tether provide is rising
Nonetheless, Tether weathered this storm and has managed to extend its token provide by roughly $18 billion this yr. This development will be attributed to the present favorable market atmosphere and points confronted by its rivals, together with Binance USD (BUSD) and USD Coin (USDC).
Earlier within the yr, the New York Division of Monetary Companies (NYDFS) directed BUSD issuer Paxos to stop further minting of the stablecoin. Later, the U.S. Securities and Change Fee (SEC) classified BUSD as a safety in its lawsuit in opposition to Binance.
Consequently, many crypto buyers turned away from BUSD, inflicting its provide to plummet from its peak of $22 billion in November 2022 to roughly $2 billion as of press time.
Conversely, USDC encountered difficulties in March when it was revealed to have publicity to the U.S. banking crisis.
The issuer, Circle, disclosed that it held a portion of USDC reserves on the now-failed crypto-friendly financial institution, Silicon Valley Financial institution. Following this revelation, USDC briefly depegged to as little as $0.87 earlier than recovering.
Nonetheless, its circulation has steadily declined regardless of the enhancing market situations.
These occasions helped to propel USDT to the forefront of the market, with its market dominance now surging to just about 70%, in keeping with DeFillama data.
The submit Tether supply reaches unprecedented $84 billion amid ETF-driven Bitcoin rally appeared first on CryptoSlate.
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