Crypto’s Most Valuable Company Continues to Expand
Tether, the company behind the USDT stablecoin, has seen a significant increase in its share of the global stablecoin supply. Data from The Block reveals that Tether’s market share grew from 50% to 71% throughout 2023.
A Dominant Force in the Stablecoin Market
Tether currently has over 95 billion stablecoins in circulation, surpassing the GDP of countries like Guatemala and Bulgaria. In comparison, its main competitor Circle’s USD Coin (USDC) has only 27 billion tokens in circulation after starting the year with over 48 billion.
Change in Leadership
In December, Tether experienced a change in leadership as CTO Paolo Ardoino took over as CEO. The former CEO, Jean-Louis van der Velde, was known for his mysterious nature. Ardoino has been actively working to establish positive relationships with law enforcement and regulators by freezing USDT held in OFAC-sanctioned wallets and onboarding law enforcement agencies.
Hot Take: Tether’s Growing Dominance Raises Concerns
Tether’s increasing market share and circulation of stablecoins highlight its dominance in the crypto industry. While this growth is impressive, it also raises concerns about the concentration of power and potential risks associated with a single company controlling such a large portion of the stablecoin supply. As Tether continues to expand, it will be crucial for regulators and industry participants to closely monitor its operations to ensure stability and transparency.
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