Tether (USDT) Gains 21% Market Share in 2023, Dominates Two-Thirds of Stablecoin Supply
Tether's USDT now commands over 70% of the total stablecoin supply circulating in the market, surpassing its competitors in 2023.
Tether (USDT) Gains 21% Market Share in 2023, Dominates Two-Thirds of Stablecoin Supply. Image: Decrypt
Tether, the issuer of USDT, saw its stablecoin market share rise from 50% to 71% throughout 2023, according to CoinGecko statistics.
Market capitalization changes among top stablecoins over the past year. Source: CoinGecko (15/01/2024)
Most recently, Tether printed an additional $1 billion on the evening of January 12, further pushing its market capitalization to a new record, surpassing $95 billion for the first time within just one year. This figure exceeds even the GDP of countries like Guatemala and Bulgaria.
Meanwhile, Tether's primary competitor, Circle, the issuer of USDC, has recently filed for an IPO with the SEC. Circle currently has 27 billion tokens in circulation and started 2023 with a supply of 48 billion USDC.
In addition, thanks to its periodic profit allocation strategy, Tether's Bitcoin investment portfolio is currently valued at approximately $3 billion as of January 4, 2024, continuing to be a significant revenue-generating channel for the company.
Tether has also recently undergone internal personnel changes. Long-time CTO Paolo Ardoino has been promoted to CEO, succeeding Jean-Louis van der Velde at the end of last year. In his new role, Ardoino is actively fostering closer ties with U.S. law enforcement agencies through multiple collaborations, freezing over $435 million in illicit funds associated with wallets on the U.S. Office of Foreign Assets Control (OFAC) sanctions list.
