USDT Achieves Record $100 Billion Market Cap as Crypto Market Booms

Tether

Tether’s USDT has achieved a significant milestone, hitting an all-time high market capitalization of $100 billion, showcasing a 9% growth since the year began. This milestone cements Tether’s position as the dominant stablecoin, outpacing its closest competitor, USD Coin (USDC). Despite this success, a lawsuit has emerged involving cryptocurrency platform FTX and its alleged misuse of Tether in a profit-making scheme, underscoring challenges in the stablecoin sector.

A Leading Stabilizer

Tether’s USDT has recently reached a history milestone, boasting an all-time high market capitalization of $100 billion. This achievement, marking a remarkable 9% growth since the year’s inception, solidifies Tether’s lead over its nearest competitor, USD Coin (USDC), issued by Circle. According to data from CoinGecko on March 4, Tether’s market capitalization briefly touched the $100 billion mark.

Stablecoin Market Dominance

Tether’s market capitalization now surpasses USDC by over $71 billion, underscoring its dominance in the stablecoin domain. This places Tether within the market cap realm of major corporations like BP and Shopify.

Operational across 14 different blockchains and protocols, Tether ranks as the third-largest cryptocurrency by market capitalization, trailing only Ether. Its stability amid the crypto market’s volatility has made it a crucial choice for traders. Tether’s issuer asserts that each USDT token is backed 1:1 with reserves, primarily comprising yield-bearing U.S. Treasury Bills (T-Bills). In the final quarter of 2023, Tether reported a record quarterly profit of $2.85 billion, with $1 billion stemming from its T-Bills investments.

$144.08 Billion Stablecoin Market

The stablecoin sector as a whole has witnessed substantial growth, with a $3.26 billion increase in market capitalization over the past eight days, totaling $144.08 billion. Noteworthy expansions in supply have been observed in stablecoins such as Tether, USDC, DAI, and FDUSD.

The broader cryptocurrency market has also displayed signs of resurgence, with the total market capitalization surpassing $2 trillion in the last month. Bitcoin, in particular, has experienced a 50% surge in price, reaching its highest point in two years.

Misuse and FTX Suit

However, amidst these positive developments, a lawsuit emerged in February involving cryptocurrency trading platform FTX and its alleged misuse of Tether (USDT) in a profit-making scheme. The lawsuit, filed in a Florida court, implicates FTX and its sister firm, Alameda Research, in creating and selling USDT for profit through an unofficial credit line with Deltec Bank & Trust Ltd., initially without funding the purchases.

The complaint further accuses Deltec of facilitating the misappropriation of customer funds by FTX and Alameda Research. Notably, Tether has not been named as a defendant in the lawsuit. Lawyers representing the victims have presented extensive evidence, including thousands of pages of communications, to bolster their case against FTX and its affiliates.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.