In a monumental achievement for the cryptocurrency world, Tether’s USDT stablecoin has astonishingly hit a $100 billion market cap, marking a significant 9% growth since the start of the year. This development not only cements Tether’s dominance over its closest competitor, USD Coin, but also compares its market valuation with leading global corporations such as BP and Shopify.
Tether’s impressive milestone was briefly reached on March 4, according to CoinGecko, although other platforms like CoinMarketCap have yet to acknowledge this achievement. This places Tether as the third-largest cryptocurrency by market cap, trailing only behind Ether, and highlights its pivotal role in providing crypto traders with a stable asset amidst the volatile market.
Interestingly, the bulk of USDT issuance is found on the Tron blockchain, which has been flagged by a United Nations report for its alleged popularity among cyber fraudsters in Southeast Asia. Tether, however, disputes these claims, emphasizing its cooperation with law enforcement and the traceability of its tokens.
Financially, Tether has reported a record-breaking quarterly profit of $2.85 billion in the last quarter of 2023, with a significant portion derived from its investments in U.S. Treasury Bills. Despite concerns over the quality of its reserve assets, Tether has been actively working to diminish its exposure to higher-risk assets. As of the end of 2023, Tether disclosed it had reduced its loan outlays from its reserves, albeit not entirely fulfilling its pledge to eliminate them.
This mix of financial success and controversy has placed Tether in a unique position within the crypto space. Its commitment to reducing loan exposures and its substantial market cap growth reflect a complex narrative of innovation, scrutiny, and the ongoing evolution of the cryptocurrency industry.