Tether’s USDT Nears $100 Billion Market Cap After Record-Breaking Profits
Tether, the stablecoin issuer, is on the verge of reaching a $100 billion market cap following its exceptional performance last quarter. The company’s latest earnings report reveals that it made a record-breaking profit of $2.85 billion in Q4 2023, primarily driven by interest payments from US Treasuries. Tether also benefited from the appreciation of its gold and Bitcoin reserves.
Tether’s Dominance Grows Amid Competitors’ Challenges
Analytics firm IntoTheBlock attributes Tether’s increasing dominance to the difficulties faced by its competitors. Circle, the issuer of USDC, has been affected by the regional bank crisis, while Binance’s BUSD is under regulatory scrutiny from the US government. This situation has allowed Tether to strengthen its presence and expand its operations.
USDT’s Market Cap and Financial Position
Currently, USDC represents less than one-third of Tether’s market cap, and BUSD is being phased out. As of December 1st, 2023, Tether holds $5.4 billion in excess funds, which cover its $4.8 billion outstanding loans included in USDT reserves. Additionally, the company manages over $98 billion in assets.
Hot Take: Tether Nears Milestone Market Cap
Tether’s USDT is rapidly approaching a significant milestone with a market cap close to $100 billion. The company’s outstanding financial performance in Q4 2023, driven by interest payments from US Treasuries and the appreciation of its reserves, has propelled it to new heights. Furthermore, Tether’s competitors facing challenges have contributed to its increasing dominance in the stablecoin market. As Tether continues to expand its operations and strengthen its presence, it is poised for further growth and success in the future.
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