Crypto market recovery propels USDT to a historic $100 billion market cap
Tether’s USDT, a leading stablecoin issuer, recently achieved a significant milestone by reaching a record-breaking market capitalization of $100 billion. This represents a 9% growth since the start of the year and solidifies Tether’s position as the dominant player in the stablecoin sector, surpassing its closest competitor, USD Coin (USDC), issued by Circle. On March 4, Tether’s market capitalization briefly reached the $100 billion mark, according to data from CoinGecko.
Tether operates on 14 different blockchains and protocols, making it the third-largest cryptocurrency by market cap, trailing only behind Ether. It has become a crucial choice for traders looking for a stable asset in the volatile crypto market. Tether’s issuer claims that each USDT token is backed 1:1 with reserves, primarily consisting of yield-bearing U.S. Treasury Bills (T-Bills). In the last quarter of 2023, Tether reported a record quarterly profit of $2.85 billion, with $1 billion coming from its T-Bills investments.
The entire stablecoin sector has experienced significant growth, with a $3.26 billion increase in market cap over the past eight days, bringing the total to $144.08 billion. This reflects a 2.31% increase, with Tether, USDC, DAI, and FDUSD among the stablecoins witnessing notable expansions in supply.
The broader cryptocurrency market has also shown signs of recovery, with the total market cap surpassing $2 trillion in the last month. Bitcoin has experienced a 50% surge in price, reaching two-year highs.
Amidst these positive developments, a lawsuit has emerged involving the cryptocurrency trading platform FTX and its alleged misuse of Tether (USDT) in a profit-making scheme. The lawsuit, filed in a Florida court, implicates FTX and its sister firm, Alameda Research, in creating and selling USDT for profit through an unofficial credit line with Deltec Bank & Trust Ltd., without initially funding the purchases.
The complaint also accuses Deltec of facilitating the misappropriation of customer funds by FTX and Alameda Research. However, Tether has not been named as a defendant in the lawsuit. Lawyers for the victims have provided extensive evidence, including thousands of pages of communications, to support their case against FTX and its affiliates.
