Tether’s USDT achieves $115B market cap milestone

The market value of Tether’s stablecoin USDT has exceeded $115 billion.

Tether’s stablecoin USDT (USDT) has reached a major milestone by surpassing $115 billion in market value, according to a somewhat mysterious X-post by CEO Paolo Ardoino. The achievement underscores USDT’s dominance in the stablecoin market, where it has accounted for more than 70% of the market for nearly a year now.

The latest data shows that USDT’s market cap has increased by over $1 billion in the past week, coinciding with Bitcoin’s (BTC) current price rally to $60,200.

Tether’s market cap of over $115 billion is significant because it shows how mainstream USDT has become in crypto. A market cap of this size means that a large number of people are trusting and using Tether’s stablecoin, which is designed to maintain a stable value, unlike more volatile cryptocurrencies like Bitcoin.

“USDT’s recent market cap of $115 billion demonstrates its increasing adoption as the ‘digital dollar of choice’ for a wide range of transactions and use cases beyond cryptocurrency trading,” Ardoino said in a statement obtained by crypto.news. “We are seeing a shift in how digital assets are being used. USDT increasingly serves as an alternative to traditional savings and current accounts, particularly in emerging markets grappling with currency devaluation.”

Tether has experienced significant growth over the past year, and as the chart below shows, its market cap has increased by over 40% since September 2023.

Source: IntoTheBlock

This stability makes USDT a popular choice for trading and holding value in the crypto market. The growth also highlights the growing 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 transferred to centralized exchanges such as Kraken, OKX, and Coinbase amid the general uptrend in the cryptocurrency market.

Tether’s transparency page reveals that over 90% of the USDT supply is on either the Tron (TRX) or Ethereum (ETH) networks.

Tether’s growth comes with some scrutiny

Tether has come under scrutiny over potential misuse of USDT by sanctioned entities and illicit activity, with some traditional financial institutions claiming that Tether’s supply could be in jeopardy if demand for the crypto weakens.

In response to concerns about abuse, Tether has begun partnering with Chainalysis to monitor USDT activity on secondary markets, aiming to improve transparency and security by identifying wallets associated with illicit activity or sanctioned addresses.

Tether’s recent blockchain partnership

Tether recently announced a partnership to promote blockchain education at five universities in 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 provide students with practical skills relevant to industries such as healthcare, finance, digital identity and supply chain management.