Tether USDT supply reaches $80B for 1st time in almost a year
Tether’s USDT supply surpassed $80 billion today for the first time in 11 months, approaching an all-time high of $83.13 billion.
In 2023, USDT supply increased by about $14 billion in less than 100 days from the $66.2 billion recorded at the beginning of the year.
This growth solidifies USDT’s market dominance among dollar-pegged stablecoins.according to of crypto slate dataUSDT accounts for about 61% of all stablecoins on the market.
In addition to it, of crypto slate According to data, Tether’s $25.05 billion trading volume in the last 24 hours is six times that of its closest rival, USD Coin (USDC).
According to DeFillama, over 50% of the total supply of Tether has been issued on Justin Sun’s Tron blockchain. data.
Tether owes growth to competitor troubles
Tether’s growth coincides with regulatory and banking issues with its main competitors USDC and Binance USD (BUSD).
BUSD was the fastest-growing stablecoin last year, but recent regulatory troubles with Binance and its issuer Paxos have led to a massive exodus from the stablecoin.
In February, the New York Department of Financial Services (NYDFS) ordered Paxos to shut down BUSD’s other mints. Binance has since been sued by the U.S. Commodity Futures Trading Commission (CFTC) for alleged regulatory violations.
These occurrences have reduced BUSD supply to $7.1 billion from its November 2022 peak of $22 billion.
Meanwhile, USDC’s troubles began in March when it became clear that the US was in the midst of a banking crisis. Its issuer, Circle, said it holds a portion of the stablecoin reserves of failed crypto-friendly bank Silicon Valley Bank.
Following this news, the USDC temporarily lowered the peg to 0.87 before recovering it. Investor confidence in the stablecoin remains low, however, as the stablecoin’s circulation steadily declined over the last month.
Matrixport’s head of research, Markus Thielin, pointed this out in a note to customers on April 6th. Thielin says:
“USDC holders appear to have either converted their Circle stablecoins into Tether’s USDT or simply sold $10 billion USDC and bought Bitcoin instead.”
according to crypto slate According to data, USDC supply has reached $32 billion at the time of writing.
Post-tether USDT supply hits $80 billion for the first time in almost a year, first appearing on CryptoSlate.