Tether’s USDT Nears $120 Billion, Dominates Stablecoin Market

Tether’s USDT stablecoin is nearing a significant milestone, with its market cap approaching $120 billion, reinforcing its position as the top stablecoin in the crypto market. Despite this growth, Tether continues to face criticism over its reserves and potential risks for users.

Recently, Tether minted $1 billion USDT on the Ethereum blockchain, bringing its market capitalization to $119 billion. Over the past year, the company has issued $35 billion worth of USDT, according to blockchain platform SpotOnChain. This keeps USDT far ahead of its main competitor, Circle’s USDC, which holds a much smaller share of the stablecoin market.

As of Q2 2024, Tether holds over $97 billion in US Treasuries, making it the 18th largest holder of US government bonds globally, surpassing nations like Germany and Australia. Stablecoins like USDT are practical for everyday use, providing a stable alternative to volatile cryptocurrencies, and are increasingly used in emerging markets for savings, payments, and cross-border transactions.

Tether’s global user base exceeds 350 million, and this high adoption has boosted its profits. In the last month alone, Tether earned over $400 million, according to Token Terminal data. Tether’s growth has also led to expansion into new sectors, including agriculture, and restructuring into four key areas: finance, data, education, and power.

Despite its rapid expansion, Tether faces criticism over its business practices. Some have raised concerns about the risks associated with its model and the transparency of its reserves. Consumers’ Research has particularly highlighted potential vulnerabilities for users, pointing to Tether’s exposure to financial risks.

While Tether continues to dominate the stablecoin market, these ongoing concerns remain a key issue for the company as it moves forward.