Tether's USDT stablecoin reaches a historic $100 billion market cap, driven by Bitcoin's surge and enhanced financial gains.
USDT, Tether's stablecoin, has crossed the monumental threshold of $100 billion in market capitalization today, marking a significant achievement in the cryptocurrency realm.
Being the pioneer stablecoin to attain such a scale, USDT's distribution has surged by more than 9% since the inception of the year, primarily fueled by a skyrocketing demand for Bitcoin, which surged to $66,000 today, a milestone not seen since November 2021. This remarkable feat solidifies Tether's position as the most actively traded cryptocurrency globally.
The pinnacle of circulation peaked at $100.2 billion around 8:10 a.m. GMT on Monday, as reported by CoinGecko, although it later adjusted to approximately $99.6 billion. Furthermore, there was a brief moment when the token's valuation surpassed $1. Despite attempts to reach out to Tether representatives for comments, there was no immediate response.
According to a January attestation, Tether's disclosed reserves for its USDT stablecoin surged to $97 billion in December, with over 76% of it secured in short-term U.S. Treasury bills. The increased yields on these securities have notably bolstered Tether's financial gains over the past year.
In December, the company unveiled an excess capital of $2.85 billion designated for investments in various sectors including industry research and Bitcoin mining. With intentions to further delve into these domains in 2024, Tether CEO Paolo Ardoino declared in November the allocation of approximately $500 million solely for Bitcoin mining projects. Currently, Tether commands a staggering 70% share of the stablecoin market, with its closest rival, Circle's USDC, comprising only 19%. Recently, Circle's Policy and Regulation Chief scrutinized Tether during a House Financial Services Committee session, urging Congress to implement stricter measures against the leading stablecoin provider.