Tether nears $120 billion market cap as USDT dominance grows

Tether's (CRYPTO:USDT) USDT stablecoin is on the verge of reaching a market capitalisation of $120 billion, continuing to solidify its position as the largest stablecoin in the crypto market. 

This growth comes after the company minted $1 billion worth of USDT on the Ethereum blockchain earlier this week, bringing its market cap close to $119 billion. 

According to SpotOnChain, Tether has minted $35 billion worth of USDT in the past year. 

This substantial increase cements USDT’s dominance over its competitors, with Circle’s USDC holding less than a third of Tether’s market share. 

As of Q2 2024, Tether holds over $97 billion in U.S. Treasuries, making it the 18th largest holder of U.S. government debt, surpassing major economies such as Germany and Australia. 

The company has also diversified its operations into sectors like agriculture, artificial intelligence, and Bitcoin mining. 

These efforts align with Tether's goal to expand USDT's distribution and business model beyond the cryptocurrency space. 

Tether’s stablecoins have seen widespread adoption, particularly in emerging markets like Nigeria, where users rely on USDT for savings, payments, and cross-border transactions. 

With over 350 million users globally, Tether’s business has been highly profitable, generating more than $400 million in net income over the last 30 days, according to Token Terminal data. 

Despite its success, Tether continues to face criticism regarding the transparency of its reserves and potential risks to users. 

Consumer watchdog groups have expressed concerns about the company’s financial structure and the possible impact of its business model on its users. 

However, Tether remains a dominant force in the stablecoin space as it looks to further expand its influence across new industries and regions. 

At the time of reporting, the Tether (USDT) price was $1.00.