Tether’s USDT Surpasses $84 Billion Supply Amid Market Rally
Tether’s stablecoin USDT has reached a significant milestone by surpassing the $84 billion supply mark. This comes as the current market rally gains momentum, fueled by optimism over the potential approval of a Bitcoin spot exchange-traded fund (ETF) in 2023. According to data from Messari, USDT’s supply increased by approximately $1 billion week-on-week.
Resilience Amid Market Challenges
Despite facing challenges last year, including the collapse of crypto firms like FTX and Three Arrows Capital, Tether has displayed resilience. Its market capitalization dipped to $66 billion, and doubts were raised about the stability of its reserves. However, Tether managed to boost its token supply by nearly $18 billion this year alone. This achievement can be attributed to a favorable market environment and the struggles faced by its competitors like Binance USD (BUSD) and USD Coin (USDC).
Market Dominance Bolstered by External Factors
Tether’s position in the market was further solidified by regulatory measures taken against its competitors. The New York Department of Financial Services directed Paxos, the issuer of BUSD, to halt additional minting. The U.S. Securities and Exchange Commission also classified BUSD as a security, leading to a sharp decline in its supply. Similarly, USDC faced issues when it was revealed to have exposure to the failed Silicon Valley Bank. These circumstances contributed to Tether’s surge in market dominance.
Paolo Ardoino, Tether’s CEO, celebrated this achievement on social media platform X with an “84B $USDt” post.
Hot Take: Tether’s Resilience Reflects Investor Confidence
Tether’s USDT reaching an $84 billion supply is not just a milestone; it demonstrates investor confidence in the stablecoin as a safe harbor. While its competitors face regulatory and financial hurdles, Tether has managed to maintain stability and increase its token supply. This development also reflects the overall market sentiment, which is leaning towards optimism. As the crypto market continues to evolve, Tether’s resilience and dominance position it as a reliable choice for investors.
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