USDT market cap sets new all-time high in spite of regulatory concerns USDT market cap sets new all-time high in spite of regulatory concerns
Tether continues to dominate the stablecoin market despite concerns over its reserves and regulatory issues.
2 min read
Updated: Jun. 2, 2023 at 12:07 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The market capitalization of Tether’s USDT has surpassed the previous all-time high of $83.2 billion, according to a June 1 statement from the stablecoin issuer.
Data from DeFillama showed that around half of USDT’s circulating supply, 42.86 billion, is sitting on the Tron blockchain, while 33.37 billion of its supply is on Ethereum.
The stablecoin also has a sizeable supply on other blockchain networks like Binance Smart Chain, Polygon, Solana, Avalanche, and others.
Tether’s transparency data for June first shows total assets of $85.6 billion and liabilities of 83.2 billion, a $2.4 billion liquidity cushion.
Tether’s growth in 2023
Tether’s USDT has enjoyed significant growth in the current year, adding roughly $17 billion to its market cap. During that period, its market dominance also touched a two-year high of
In 2023, Tether reported a strong first quarter and intentions to invest its profits in Bitcoin. Additionally, the crypto firm expanded its business into BTC mining, and its USDT stablecoin was integrated into the digital payments platform Strike.
Tether’s CTO Paolo Ardoino said the firm’s growth is a testament to its “battle-tested resilience in the face of market volatility and our industry-leading transparency practices.”
Concerns remain over USDT
Meanwhile, Terra’s algorithmic stablecoin implosion and the subsequent collapse of several crypto-related firms last year have placed more regulatory focus on Tether.
Several media reports have highlighted issues with its opaque reserves, and some hedge funds have bet on its possible collapse.
More recently, an SEC’s former official John Reed Stark described the firm as a “mammoth house of cards” and urged regulators to ban it. According to Stark, the stablecoin issuer operates in a regulatory vacuum, adding that its quarterly attestation cannot replace an audit.
Tether’s success is more pronounced considering the regulatory upheaval that has battled its major rivals like Binance USD (BUSD) and USD Coin (USDC).
However, Tether has consistently maintained that it has no exposure to collapsed crypto firms and has touted its business practices.
Update June 1:Title was changed to be more specific about market cap.
Mentioned in this article
Ethereum 
TRON 
Solana 
Polygon 
Tether 
USD Coin 
Binance USD 
Paxos 
Circle 
Tether Limited 
Strike 
Paolo Ardoino Posted In: Featured, Stablecoins
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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
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$232.992
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Polygon
$0.43423
Polygon, a prominent layer 2 scaling solution on Ethereum, has emerged as a multifaceted and scalable platform, enhancing the Ethereum ecosystem’s capabilities.
Tether
$1.00104
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$0.99994
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Binance USD
$1.00195
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Paxos
Paxos Trust Company, LLC is a regulated blockchain infrastructure company building transparent and transformative financial solutions.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Strike
Strike allows users to send and receive money anywhere, instantly, with no fees.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
