The world’s leading stablecoin, Tether (USDT), is rapidly expanding its market dominance as it inches closer to a significant milestone. Tether’s total assets are now on the verge of reaching a staggering $100 billion, marking an extraordinary ascent over the past six years.
According to Tether’s transparency report, the current total assets stand at a remarkable $95.2 billion, with an overwhelming majority of $92 billion locked up in the dollar-pegged USDT.
Tether’s remarkable growth trajectory was underscored by Gabor Gurbacs, strategy advisor at Tether and VanEck. Gurbacs reaffirmed his support for the stablecoin, stating, “Like the Bitcoin ETF, many thought I was crazy.”
He reminisced about the early days when USDT’s market capitalization was a mere $100 million in the spring of 2017 and expressed his belief that Tether could eventually reach the $100 billion mark.
Since the beginning of 2018, Tether’s market capitalization has experienced an astounding 6,560% surge.
The investment expert shared some key lessons he has learned from his steadfast support of Tether, which seems to be evolving into a Central Bank Digital Currency (CBDC).
Gurbacs emphasized the tendency of investors to underestimate exponential innovations and highlighted the potential of determined, small teams in realizing such innovations. He encouraged individuals to heed ambitious projects and predictions that may initially sound far-fetched.
On the same day, Tether’s Chief Technology Officer, Paolo Ardoino, announced that the company had enjoyed a successful fourth quarter.
Tether’s profits have been bolstered by high yields on US Treasury bills, with a portion of these gains being allocated to the purchase of Bitcoin.
According to Tether’s reserve report, a substantial 85.7% of its reserves consist of “Cash and Cash Equivalents and Other Short-Term Deposits.” Of this sum, 76.4% is held in US Treasury bills, while 11% is allocated to overnight reverse repurchase agreements and another 11% to money market funds.
Currently, stablecoins constitute 7.2% of the total cryptocurrency market capitalization, totaling $132 billion. This percentage represents a decline from the 16-17% market share that stablecoins held in 2022.
Tether commands a significant share of this market, boasting an almost 70% dominance. Over the past year, its supply has surged by nearly 40%, while its primary competitors have experienced declines in their market share.
Circle’s USDC supply, for instance, has contracted by 44% over the past year, reaching its lowest level since June 2021, with only $24.8 billion in circulation, equating to a market share of approximately 19%. MakerDAO’s DAI ranks as the third-largest stablecoin with $5.3 billion in circulation, followed by TrueUSD (TUSD) in fourth place with $2.3 billion.
