On March 24, Tether (USDT), the world’s most liquidated stablecoin, recorded another major milestone as its supply growth continues to surge. The market’s biggest stablecoin surpassed $40 billion in market capitalization on Wednesday. This increase highlights the rapid growth of crypto investments in just 12 months.
According to data acquired from CoinGecko, Tether’s market cap exceeded $40.1 billion, making it occupy the fourth largest digital asset position behind Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
Tether has just surpassed a $40B market cap! 🎉
In March 2021, Tether’s market cap was $4 billion! Since then, we’ve seen 900% growth in only one year! 👩🏽🚀🚀
— Tether (@Tether_to) March 24, 2021
In the same context, USDT has exceeded the USD Coin by four times, which has a market cap hovering around $10 billion. According to Massari, USDT dominance currently stands at 67%.
In the last 12 months, Tether’s market capitalization has exploded ten times reflecting significant growth in the cryptocurrency space. Earlier in January, the general crypto capitalization surpassed $1 trillion for the first time before hitting highs of $1.8 trillion earlier this month.
On several occasions, USDT has been considered as “bellwether” since its supply reflects the market’s demand for cryptocurrencies. Tether (USDT) stands as the Quote currency for cryptos on several major exchanges, including Bitfinex, which has one of the most liquid BTC markets worldwide.
Previously, USDT has been subject to intense scrutiny over the hacking scandal on the Bitfinex Exchange. Tether was alleged to be the only loosely pegged stablecoin to the U.S dollar. Furthermore, its ties to Bitfinex, a leading crypto exchange, have put USDT under intense scrutiny.
Interestingly, uncertainty and doubt amid Tether and Bitfinex scandal were cleared and laid to rest in February 2021. The two entities settled with the office of the New York Attorney General in a case against Tether. The companies were ordered to pay a fine of $18.5 million as part of the settlement and reached a consensus to report reserves each quarter for the next two years.