USDT Stablecoin Market Share Reaches 75%
17 Sep, 2024 ● Crypto News
Tether's US dollar-denominated stablecoin, USDT, now dominates two-thirds of the entire stablecoin market, following substantial growth in adoption over the past two years.
According to Token Terminal, Tether's market share increased by over 20% in the last two years, reaching more than 75% of the entire stablecoin market.
In a post dated September 16, the on-chain data platform stated:
“Tether has grown its market share from 55% to 75% over the past 2 years. 1) Tether’s USDT supply is $118 billion. 2) Tether’s market share is 75%.”
Stablecoins serve as the primary gateway from fiat currency to the crypto world.
The growing market capitalization of stablecoins indicates that investors are increasingly looking to buy cryptocurrencies.
Tether, the issuer of the world's largest stablecoin, generated approximately $400 million in revenue in the 30 days leading up to September 16, as reported by Token Terminal.
This revenue growth follows a record-breaking first quarter for Tether, which netted over $4.5 billion in profit during the first quarter of 2024.
Notably, the majority of this profit—$3.52 billion—came from the firm's financial gains in Bitcoin and gold, while only $1 billion resulted from operating costs.
This new data comes during a period of rapid growth for Tether, shortly after the company appointed Jesse Spiro, PayPal's former head of regulatory relations, as its new head of government affairs on September 13.
On August 13, Tether's USDT balance on crypto exchanges reached a record high of $20.339 billion, suggesting that investors are preparing to deploy these stablecoins into crypto assets.
Historically, Tether's exchange balance has increased in both bear and bull markets.
During bearish conditions, a rise in USDT reserves often indicates that traders are converting volatile cryptocurrencies into stablecoins to seek safety amid market uncertainty.
In contrast, during bull markets, USDT accumulation may suggest that traders are stockpiling stablecoins to buy crypto assets when prices dip.
Tether, the world's largest stablecoin issuer, has experienced significant growth over the past two years. The company plans to double its workforce to 200 employees by mid-2025, with a particular focus on expanding its compliance team.
Sources:
https://cointelegraph.com/news/tether-usdt-stablecoin-market-share-crypto
