Tether’s USDT stablecoin has reached a significant milestone today, surpassing a market cap of over $100 billion. This achievement solidifies USDT’s position as the first stablecoin to achieve such a scale, with a distribution increase of over 9% since the beginning of the year.

The surge in demand for Bitcoin, which reached $66,000 today for the first time since November 2021, has contributed to the growth of USDT. As the most frequently traded cryptocurrency globally, Tether has established itself as a key player in the market.

At its peak, USDT’s circulation reached $100.2 billion around 8:10 a.m. GMT on Monday, as reported by CoinGecko, before adjusting to approximately $99.6 billion. There was also a moment when the token’s value surpassed $1. Attempts to obtain comments from Tether representatives were unsuccessful.

USDT 24-hour market cap | Source: CoinGecko

You might also like:

Meme coin mania: PEPE tops gainers list with 70% spike

According to a January attestation, Tether’s declared reserves for its USDT stablecoin rose to $97 billion in December, with over 76% held in short-term U.S. Treasury bills. The increased yields on securities have significantly boosted Tether’s financial gains over the past year.

In December, the company disclosed an excess capital of $2.85 billion allocated to investments in sectors such as industry research and Bitcoin mining. Tether CEO Paolo Ardoino announced plans to further invest in these areas in 2024, with approximately $500 million earmarked for Bitcoin mining projects alone.

Currently dominating 70% of the stablecoin market, Tether’s closest competitor, Circle’s USDC, only holds a 19% market share. Circle’s Policy and Regulation Chief recently raised concerns about Tether at a House Financial Services Committee session, urging Congress to take stricter actions against the leading stablecoin provider.

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

Post Views: 3