The market capitalization of Tether‘s stablecoin USDT has surpassed $115 billion.
According to a somewhat cryptic X post by CEO Paolo Ardoino, Tether’s stablecoin USDT (USDT) hhas reached a significant milestone, surpassing $115 billion in market capitalization. This achievement underscores USDT’s dominance in the stablecoin market, where it has accounted for over 70% of the market for nearly a year.
Recent data indicates that USDT’s market cap grew by over $1 billion in the past week, coinciding with a rebound in Bitcoin’s (BTC) current price of $60,200.
Tether surpassing $115 billion in market cap is significant because it demonstrates how mainstream USDT has become in crypto. A market cap of this size means that a large number of people trust and use Tether’s stablecoin, which is designed to maintain a stable value, unlike more volatile cryptocurrencies like Bitcoin.
“USDT’s recent surge to a $115 billion market cap underscores its increasing adoption as the ‘digital dollar of choice’ for a wide range of transactions and use cases beyond just cryptocurrency trading,” Ardoino said in a statement obtained by crypto.news, “We’re seeing a shift in how digital assets are used, with USDT increasingly serving as an alternative to traditional savings and checking accounts, particularly in emerging markets grappling with currency devaluation.”
Tether has experienced significant growth over the last year, with its market cap increasing by over 40% since September 2023, as the chart below shows.
This stability makes USDT a popular choice for trading and holding value in the crypto market. The growth also highlights the increasing role of stablecoins in the broader financial system, as they provide a reliable bridge between traditional money and digital currencies.
Blockchain analyst Lookonchain reported that $1.3 billion worth of USDT was moved to centralized exchanges such as Kraken, OKX, and Coinbase amidst a broader crypto market uptrend.
Tether’s transparency page reveals more than 90% of USDT’s supply is either on the Tron (TRX) or Ethereum (ETH) networks.
Tether’s growth comes with some scrutiny
Tether has faced scrutiny over the potential misuse of USDT by sanctioned entities and illicit activities. Some traditional financial institutions claim that if crypto demand weakens, Tether’s supply could be jeopardized.
In response to concerns about misuse, Tether has started collaborating with Chainalysis to monitor USDT activity on secondary markets. This aims to improve transparency and security by identifying wallets associated with illicit activities or sanctioned addresses.
Tether’s recent blockchain partnership
Tether recently announced a partnership to promote blockchain education across five universities in the Ivory Coast, including Université Félix Houphouët-Boigny and Institut National Polytechnique Félix Houphouët-Boigny.
Through its Tether Edu unit, Tether will support programs focused on blockchain technology, cryptocurrencies, and smart contracts, aiming to equip students with practical skills relevant to sectors like healthcare, finance, digital identity, and supply chain management.