Recently, Tether’s USDT achieved a significant milestone by reaching an all-time high market capitalization of $100 billion. This marks a 9% growth since the beginning of the year, widening its lead over competitors like USD Coin (USDC).

As of March 4, Tether’s market capitalization hit the $100 billion mark, according to data from CoinGecko. This places Tether well ahead of USDC by more than $71 billion, establishing its dominance in the stablecoin sector.

Tether operates on 14 different blockchains and protocols, making it the third-largest cryptocurrency by market cap, trailing only behind Ether. It has become a pivotal option for traders seeking stability in the volatile crypto market. Each USDT token is claimed to be backed 1:1 with reserves, primarily consisting of yield-bearing U.S. Treasury Bills (T-Bills).

In the last quarter of 2023, Tether reported a record quarterly profit of $2.85 billion, with $1 billion coming from its T-Bills investments.

The Growth of Stablecoins

The entire stablecoin sector has seen significant growth, with a $3.26 billion increase in market cap over the past eight days, totaling $144.08 billion. This growth reflects a 2.31% increase, with stablecoins like Tether, USDC, DAI, and FDUSD experiencing notable expansions in supply.

Furthermore, the broader cryptocurrency market has shown signs of recovery, with the total market cap surpassing $2 trillion in the last month. Bitcoin has surged by 50%, reaching two-year highs.

Lawsuit Allegations Against FTX and Alameda Research

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

The complaint also implicates Deltec of facilitating the misappropriation of customer funds by FTX and Alameda Research. Despite these allegations, Tether has not been named as a defendant in the lawsuit. Lawyers for the victims have provided extensive evidence to support their case against FTX and its affiliates.

For more news and updates on cryptocurrencies, investing, and finance, explore Global Crypto News.

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