Tether's USDT Achieves New Milestone

The largest stablecoin by market capitalisation has now gotten even larger, with Tether (USDT) hitting new record.

Crypto stablecoin Tether has joined the list of coins breaching new levels, by crossing an all-time high market cap of $100 billion.

This achievement marks a 9% year-to-date growth, solidifying its position ahead of its tightest competitor: USD Coin (USDC).

On March 4th, Tether briefly reached the $100 billion mark, reflecting the dynamic nature of its market cap – which is heavily influenced by factors such as price fluctuations and circulating supply, as reported by CoinGecko.

What does this mean?

This milestone highlights the token’s dominance in the stablecoin space, with its market cap exceeding that of USDC by over $71 billion.

• Tether’s substantial market cap puts it on par with major entities such as the British oil and gas giant BP.
   
• Tether holds the position as the 3rd largest cryptocurrency by market cap, trailing behind ether (ETH).

Over the past month, the crypto market has surged past a market cap of $2 trillion, driven by Bitcoin’s impressive 50% price jump, touching the $65,000 level. This, in turn, had its effect on secondary coins – such as DOGE and SOL.

Read more here : Think Beyond Bitcoin – ETH & SOL Rally on Surge

Do We Smell Controversy?

Despite the token’s success, doubts about the quality of assets backing USDT have lingered in the crypto space.

In response, Tether has taken steps to reduce exposure to higher-risk assets.

How? Tether aimed to halt lending from reserves by end-2023, but still had $4.8bn in loans by then, promising to clear them by 2024.

Interestingly enough, over 50% of the currently issued USDT is based on the Tron blockchain – known for being related to cyber fraud and money laundering in SEA.

The company has refuted these claims, emphasising its collaboration with law enforcement and the traceability of its token.