Tether USDT poised to hit $100 billion market cap following a surge in global usage News ▸ Tether ▸ Stablecoins
Tether USDT poised to hit $100 billion market cap following a surge in global usage
Tether stablecoin is enjoying increased demands as Bitcoin's price returns to previous high.
2 min read
Updated: Mar. 5, 2024 at 12:40 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether’s USDT stablecoin is on the verge of a significant milestone, with its market capitalization nearing $100 billion.
CryptoSlate’s data show that the digital asset currently boasts a market capitalization of $99.5 billion, representing a 9% growth on the year-to-date metric.
This surge follows the recent minting of 1 billion USDT by the Tether Treasury. On Mar. 3, Whale Alert reported this significant activity, with the Tether Treasury creating an additional 1 billion USDT, valued at approximately $999 million.
In response, Tether CEO Paolo Ardoino clarified that the newly minted USDT is intended to replenish the Ethereum network. He explained that this freshly minted USDT will serve as inventory for forthcoming issuance requests and chain swaps.
“PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps,” Ardoino explained.
Further, Ardoino told CryptoSlate,
“Surpassing the $100 billion market cap is not just a numerical achievement; it’s a testament to Tether’s pivotal role in reshaping the landscape of digital finance…
As we celebrate this historic milestone, we remain committed to driving innovation, pushing the boundaries of what’s possible, shaping a more equitable and accessible financial future for all, and being unstoppable together.”
Why is Tether’s market cap rising?
Tether’s rising market capitalization reflects the heightened demand for the stablecoin among investors looking to enter the crypto market.
Following the approval of multiple Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission, institutional and retail interest in the crypto sphere has surged significantly, considering BTC’s price has risen to previous highs and the potential for more gains.
Moreover, Tether is witnessing a notable uptick in demand from developing nations such as Nigeria, where citizens are turning to it as a safeguard against the volatility of their national currencies, which are often prone to frequent devaluation.
Additionally, Tether’s increasing market capitalization can be attributed to its integration with the Tron network. According to DeFillama data, over $50 billion USDT are circulated on Tron, surpassing the $40.2 billion on Ethereum.
These numbers suggest market makers and large investors favor the Justin Sun-linked network due to its lower transaction fees.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Bitcoin
$99,190.50
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.