Tether Circulating Supply Surpasses $100 Billion
30 Jul, 2024 ● Crypto News
Tether has reached a circulating supply of $113.13 billion as of July, marking a notable achievement since the collapse of Silicon Valley Bank (SVB) in March 2023.
According to data from IntoTheBlock (ITB), the SVB collapse in 2023 was a significant turning point for the stablecoin market, as traditional finance institutions moved to USDT for stability.
Speaking with Cointelegraph, Vincent Maliepaard, marketing director at ITB, noted that USDT’s accessibility and liquidity are the “key reasons for its dominance” as the “go-to stablecoin for traders and investors," commenting:
“Its presence as a base trading pair on most exchanges makes it an easy solution for transferring value or to hedge against market volatility.”
The overall growth of stablecoin market capitalization has continued after the SVB collapse, rising from $137.86 billion in December 2022 to roughly $150 billion by July 2024, according to ITB data.
The stablecoin market is gaining global exposure with regulatory initiatives like the new Swiss Financial Market Supervisory Authority (FINMA) stablecoin issuer guidelines.
According to ITB data, this increased exposure has led to greater trust and liquidity in the market, with stablecoins like DAI, FDUSD, and USDM witnessing transactions exceeding $100,000.
Circle USD (USDC) made regulatory strides in July, becoming the first global stablecoin issuer to comply with the European Union’s new Markets in Crypto-Assets (MiCA) regulatory framework.
However, despite this development and its $33.71 billion market capitalization, there remains a significant gap between USDC and USDT’s $113.13 billion market cap.
Discussing the reasons behind USDT’s success, Maliepaard explained that USDT has a role beyond decentralized finance (DeFi) and trading:
“USDT presents a compelling value proposition for individuals and businesses in regions facing hyperinflation or economic instability. It serves as a stable financial tool, offering reliability and stability.”
An Elliptic Research report on July 10 revealed that the Cambodian conglomerate group, Huione Group, was involved in facilitating online scams in Southeast Asia.
The report disclosed transactions surpassing $11 billion linked to money laundering and cyber scams on the Huione Guarantee marketplace, predominantly using USDT.
However, the use of USDT made it much easier to track illicit funds via the blockchain public digital ledger compared to traditional fiat flows.
Sources:
https://cointelegraph.com/news/tether-dominates-113b-post-svb-collapse-intotheblock
