Tether’s Market Dominance Grows to 71% in 2023
Tether, the entity behind the USDT stablecoin, has seen its market dominance increase from 50% to an impressive 71% in 2023, according to Glassnode.
Tether (USDT) Market Cap Surpasses $95 Billion
In a recent development, Tether’s market capitalization reached an all-time high of $95 billion after generating an additional $1 billion on January 12.
On the other hand, Circle, responsible for the USDC stablecoin, filed for an IPO with the SEC but has significantly fewer tokens in circulation compared to Tether.
In addition to its success with stablecoins, Tether’s Bitcoin investment portfolio is valued at around $3 billion as of January 4, 2024.
Paolo Ardoino, the CTO turned CEO of Tether, has been actively collaborating with U.S. law enforcement agencies and freezing wallets linked to illicit activities.
Increase in Tether’s Use by Criminals and Scammers
Reports suggest that Tether’s widespread use has attracted criminals engaging in cyber fraud, money laundering, and underground banking activities in Asia.
Cases include sextortion and pig butchering schemes aimed at extorting money from victims.
Despite this negative association, Tether has taken proactive measures by banning over 1,260 addresses linked to illicit activities, totaling more than $875 million in USDT.
Hot Take: The Rise and Challenges of Tether
Tether’s dominance in the stablecoin market is undeniable. However, its growth also brings challenges as it becomes a target for criminals and scammers.
While Tether actively collaborates with law enforcement agencies and takes measures to ban illicit activities, the association with bad actors raises concerns about the stability and reputation of the stablecoin.
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