Market Cap of Tether (USDT) Increases by 4 Billion USD in 3 Weeks

Tether (USDT), the leading stablecoin in the cryptocurrency market, continues to strengthen its position amid the current surge by issuing an additional 4 billion USDT in less than a month.

Accordingly, after lingering around a market cap of 83 billion USD for nearly 5 months, the circulating supply of Tether (USDT) has seen a resurgence since mid-October, coinciding with Bitcoin gaining momentum from ETF prospects.

Data from Whale Alert shows that Tether has conducted four 1 billion USDT issuances since October 20th, pushing the stablecoin's market cap above 87 billion USD for the first time in history.

Some observers note that the last time Tether's market cap surged significantly was in March 2023, when its competitor USDC faced heavy depegging due to funds being stuck at Silicon Valley Bank.

The issuance of new USDT over the past few weeks accounts for 18% of the total newly minted Tether stablecoins in 2023. Specifically, this year, the company has minted 22.75 billion USDT, with 13 billion USD on the TRON network and the remaining 9.75 billion USD on Ethereum. TRON and Ethereum currently host nearly all USDT, with circulating supplies of 46 billion USD and 40 billion USD, respectively.

This event was also announced by Tether's new CEO, Paolo Ardoino, on Twitter on November 14th.

This development signifies that Tether's market share in the USD-pegged stablecoin sector has risen to 68%, amidst other competitors showing no significant growth in market cap.

In its Q3 2023 asset report, the stablecoin issuer noted holding the majority of its collateral assets in the form of short-term U.S. Treasury bills, while increasing investments in new products.

Ardoino hinted that in 2024, Tether will launch up to 5 new products, promising they will be "what users really need." Tether is known to be heavily investing in Bitcoin mining and developing the RGB Protocol to enable smart contracts on the Bitcoin network.

The record-breaking market cap of Tether's stablecoin, combined with recent positive signals such as increased crypto investment inflows and recovering spot trading volumes, has led many to believe that the current growth phase of Bitcoin and other cryptocurrencies is substantiated and could reverse the prolonged downtrend of the past two years.