Tether USDT Dominates Stablecoin Market With 75% Share

According to Cointelegraph, Tether’s US dollar-denominated stablecoin, USDT, now controls two-thirds of the entire stablecoin market, following significant adoption over the past two years. Tether USDT’s market share rose over 20% during this period to control over 75% of the entire stablecoin market, according to Token Terminal. The onchain data platform reported on Sept. 16 that Tether's USDT supply is $118 billion, reflecting a 75% market share. Stablecoins represent the main on-ramp from fiat to the crypto world, and growing stablecoin market capitalizations suggest that investors are increasingly looking to buy cryptocurrencies. Tether, the issuer of the world’s largest stablecoin, has generated approximately $400 million in revenue during the 30 days leading up to Sept. 16, according to Token Terminal. This growing revenue follows a record first quarter for the stablecoin issuer, with Tether netting over $4.5 billion in profit during the first quarter of 2024. Notably, the majority of that profit, $3.52 billion, stemmed from the firm’s financial gains in Bitcoin and gold, while only $1 billion came from operating costs. The new data comes during a period of significant growth for the stablecoin issuer, days after Tether appointed PayPal’s former head of regulatory relations, Jesse Spiro, as its new head of government affairs on Sept. 13. Tether’s USDT balance on crypto exchanges hit a record high of $20.339 billion on Aug. 13, signaling that investors are gearing up to deploy these stablecoins into crypto assets. Historically, Tether’s balance on exchanges has increased during both bear and bull markets. In bearish conditions, the rise in USDT reserves often signals that traders convert volatile cryptocurrencies into stablecoins, seeking safety amid market uncertainty. Conversely, during bull markets, USDT accumulation may indicate that traders are stockpiling stablecoins to deploy them for crypto purchases when prices drop. The world’s largest stablecoin issuer has seen significant growth during the past two years. Tether aims to double its workforce to 200 employees by mid-2025, with a particular focus on expanding its compliance team.