Tether (USDT) Continues to Break Records in 2023
If you’ve been following the crypto market, you’ll know that Tether (USDT) has been making significant waves this year. In fact, its market capitalization has increased by at least $20 billion so far in 2023. According to data from Whale Alert, Tether has minted 22.75 billion USDT this year, with 4 billion USDT issued in the past four weeks.
The steady growth of Tether USDT has seen its market value surpass $80 billion in April 2023 after starting the year with a market cap of around $66 billion. On November 14, the USDT market cap briefly reached $87 billion, as reported by CoinGecko.
A spokesperson for Tether attributes this ongoing growth to two key reasons. The first is the excitement around the potential approval of a spot Bitcoin exchange-traded fund (ETF), which has generated growing interest from institutional investors.
Additionally, Tether’s record-breaking growth has been fueled by increasing demand in emerging markets. The stablecoin is becoming the go-to digital dollar for many communities in countries suffering from currency devaluation compared to the dollar.
For example, Tether accounts for 80% of all crypto transactions in Brazil and holds a similar pattern in many other countries, according to public information from the Brazilian government.
Stablecoin Comparison: USDC vs. USDT
While Tether continues to see impressive growth, other major stablecoins like Circle’s USD Coin (USDC) have struggled to gain momentum. After reaching a peak of $55 billion in June 2022, USDC’s market capitalization has steadily declined throughout 2023. Since January, USDC has lost $20 billion in market value, representing about a 45% decrease. At present, USDC’s market cap stands at $24 billion, as per CoinGecko.
Hot Take: Tether’s Ongoing Success Reflects Growing Demand and Market Excitement
In conclusion, Tether’s exceptional performance in 2023 showcases its growing appeal among institutional investors and emerging markets. As it continues to break records and solidify its position as a trusted digital asset for communities facing currency devaluation, it sets itself apart from other stablecoins struggling to maintain their market value.
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