Tether (USDT)’s Market Cap Reaches A New Peak, Edges Towards $84 Billion Mark

Tether USDT has seen its market cap worth attain new highs within the month of July. In response to a report by on-chain analytics firm Into The Block, the world’s largest stablecoin is steadily approaching the important thing $84 billion mark.

Based mostly on data from DeFiLlama, USDT’s market cap is up by over $480 million for the reason that starting of July, indicating an rising degree of adoption. Usually, the stablecoin’s whole market share worth has been on the rise for almost all of 2023, shifting from $66.23 billion on January 1 to its present worth of $83.80 billion.

In tandem with USDT’s market cap progress, Into The Block additionally famous the token’s circulating provide is up by virtually 30% yr thus far. Curiously, USDT’s market progress has additionally been mirrored in its operator’s growth. 

Again in Might, Tether Holdings Ltd published its quarterly assurance report saying a web revenue of $1.48 billion for Q1 2023, bringing its extra reserve to an all-time excessive of $2.44 billion. 

Into The Block noted that at the moment, Tether is nicely heading in the right direction to surpass these revenue ranges in Q2 and Q3 as there is a rise within the quantity of USDT being issued.

Tether (USDT) Growing Stablecoin Dominance In 2023

The final stablecoin market has recorded a serious decline in 2023, dropping over $12.17 billion for the reason that begin of the yr. Nonetheless, throughout this era,  USDT has been waxing robust, accumulating over about $17 billion in market cap.

In response to data from DeFiILama, Tether’s market dominance has grown by about 19% in 2023, because the token now accounts for two-thirds of the stablecoin market. 

Whereas this growth is especially pushed by USDT’s spectacular efficiency, there has additionally been a notable decline out there shares of another distinguished stablecoins.

Supply: DeFilLama

For instance, Circle’s USD Coin (USDC), which ranks because the second-largest stablecoin, has seen its market cap fall by a staggering 40% in 2023, with the present worth now set at $26.26 billion.

In the meantime, Binance USD (BUSD), with a market cap of $3.71 billion, has shed over 77% of its market shares following an embargo on its issuance earlier this yr. 

On the time of writing, Tether’s worth stays pegged at $1. With a market cap of 83.80 billion, the stablecoin ranks because the third largest cryptocurrency falling Bitcoin (BTC) and Ethereum (ETH)

Tether (USDT) rising market cap in 2023 | Supply: USDT Market Cap Daily Chart On Tradingview.com

DeFi Stablecoins Gearing Up To Match Centralized Counterparts

In different information, DeFi stablecoins have been rolling out some spectacular upgrades as they try to shut the hole between them and their centralized rivals. In a tweet on Friday, Into The Block highlighted a few of these developments.

Firstly, the MakerDAO not too long ago hiked the DAI Financial savings Price (DSR) to three.49%, and there’s the potential of a rise to eight% within the coming weeks. Moreover, the Frax protocol will likely be launching FRAX v3 in August as they give the impression of being to make FRAX a totally algorithmic token, delinking its minting course of from the USDC token.

As well as, there’s Lybra Finance which lends its stablecoin eUSD to customers at an rate of interest of 0%. Different DeFi stablecoins with spectacular options or upgrades embody Curve Finance’s crvUSD and Aave’s GHO. 

Featured Picture From Barron, Chart From Tradingview