$120 billion! Tether USDT market value hits record high

Source: Blockchain Knight

Tether's largest stablecoin, USDT, is continuing to grow, further consolidating its dominance in the market.

According to Bein Crypto, USDT's market value is approaching $120 billion for the first time.

Last week, Tether minted $1 billion worth of USDT on the Ethereum blockchain, bringing its market value to $119 billion.

Blockchain platform SpotOnChain revealed that Tether has minted $35 billion worth of USDT in the past year.

This growth consolidates USDT's position as the largest stablecoin.

It is worth noting that USDT's closest competitor, Circle's USDC, is still small in size, with less than one-third of Tether's market share.

As of the second quarter of 2024, Tether held more than $97 billion in U.S. Treasuries and repurchase agreements. This makes the company the 18th largest holder of U.S. Treasuries in the world, surpassing countries such as Germany, the UAE, and Australia.

Stablecoins are one of the most practical applications of Crypto assets in the real world, providing a stable alternative to unstable digital assets.

These assets have gained widespread adoption in emerging markets such as Nigeria, which are increasingly relying on them for savings, payments, and cross-border transactions.

Notably, this has significantly increased Tether’s adoption, with the USDT stablecoin having over 350 million users worldwide.

According to Token Terminal, the company’s net profit exceeded $400 million in the past 30 days.

Meanwhile, Tether has also expanded into areas such as agriculture and reorganized its business into four divisions, including finance, data, education, and electricity.

This diversification supports the company’s efforts to promote USDT issuance and invest in ventures such as artificial intelligence and BTC mining.

Despite its growth, Tether has also faced criticism.

The consumer research organization has expressed concerns about the risks posed by Tether’s business model, saying it could face significant user risks. In addition, some market observers have also raised warnings about the company’s reserves.