The USDT of Tether is on the brink of $120 billion and is currently the dominant stablecoin in the market
Tether’s USDT stablecoin is on the brink of achieving a $120 billion market capitalization, thereby underscoring its dominance in the face of persistent apprehensions regarding its reserves and potential hazards.
USDT, Tether’s stablecoin, is on the brink of a significant milestone, as its market capitalisation approaches $120 billion, further solidifying its status as the premier stablecoin in the crypto market. Tether continues to endure criticism regarding its reserves and potential hazards to users, despite this expansion.
Tether’s market capitalisation has reached $119 billion as a result of the recent issuance of $1 billion USDT on the Ethereum blockchain. According to blockchain platform SpotOnChain, the organisation has issued USDT valued at $35 billion in the past year. This maintains USDT’s significant advantage over its primary competitor, Circle’s USDC, which controls a significantly lesser portion of the stablecoin market.
Tether is the 18th largest global holder of US government bonds, superseding nations such as Germany and Australia, with a total of over $97 billion in US Treasuries as of Q2 2024. In emergent markets, stablecoins such as USDT are becoming more prevalent for cross-border transactions, remittances, and deposits, as they offer a stable alternative to volatile cryptocurrencies that are functional for everyday use.
Tether has achieved a global user base of more than 350 million, which has resulted in a significant increase in its profits. According to Token Terminal data, Tether generated more than $400 million in revenue during the previous month. In addition to expanding into new sectors, such as agriculture, Tether’s growth has resulted in the restructuring of the company into four critical areas: finance, data, education, and power.
Tether’s business practices have been the subject of criticism, despite its accelerated expansion. The transparency of its reserves and the risks associated with its model have been the subject of some of the concerns raised. Consumers’ Research has specifically identified potential vulnerabilities for users, indicating that Tether is susceptible to financial risks.
Despite Tether’s continued dominance of the stablecoin market, these persistent concerns continue to be a significant concern for the company as it advances.
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