Tether (USDT) has solidified its dominance in the cryptocurrency market, now controlling a staggering two-thirds of the entire stablecoin sector.
This growth reflects a significant rise in adoption over the past two years, driven by USDT’s increased utility and role as a bridge between the fiat and crypto worlds.
Tether’s Market Share Surges to 75%
According to data from Token Terminal, Tether’s USDT market share has risen by over 20% in just two years. As of Sept. 16, 2024, Tether commands 75% of the stablecoin market, with a total supply of $118 billion. The platform stated in a recent post:
"Tether has grown its market share from 55% to 75% over the past 2 years. Tether's USDT supply is $118 billion. Tether's market share is 75%."
This increase in Tether’s market dominance highlights the importance of stablecoins as an essential on-ramp for investors entering the cryptocurrency space. Stablecoins provide a reliable link between traditional fiat currencies and digital assets, allowing for seamless transactions within the crypto ecosystem.
Tether Generates $400 Million in Revenue Over 30 Days
Tether’s growing market share is further supported by its impressive financial performance. In the 30 days leading up to Sept. 16, Tether generated approximately $400 million in revenue, according to Token Terminal. This surge in revenue comes after a record-breaking first quarter in 2024, where the stablecoin issuer reported a profit of $4.5 billion.
The majority of Tether’s profit—$3.52 billion—stemmed from its investments in Bitcoin and gold. Meanwhile, $1 billion of its revenue was generated from the company’s core operations, underscoring the stability and profitability of its business model.
Record-Breaking USDT Holdings on Exchanges
Further solidifying its position as the leading stablecoin issuer, Tether’s USDT balance on cryptocurrency exchanges reached an all-time high of $20.339 billion on Aug. 13, 2024. This unprecedented balance indicates that investors are positioning themselves to deploy these stablecoins into crypto assets.
Historically, an increase in USDT reserves on exchanges can signal different market strategies. In bear markets, traders often convert volatile crypto holdings into stablecoins like USDT to mitigate risks. Conversely, during bull markets, an accumulation of USDT may suggest traders are preparing to buy cryptocurrencies when prices dip.
Tether's Expansion Plans
Tether’s impressive growth trajectory shows no signs of slowing down. The company plans to double its workforce to 200 employees by mid-2025, with a key focus on expanding its compliance team. This follows the appointment of Jesse Spiro, PayPal’s former head of regulatory relations, as Tether’s new head of government affairs. His appointment is seen as a strategic move to navigate the complex regulatory environment surrounding the cryptocurrency industry.
Overall, Tether’s USDT has firmly entrenched itself as the leading stablecoin, capturing the lion’s share of the market through sustained growth and adoption. Its financial success, marked by significant profits and revenue, coupled with increasing reserves on exchanges, signals robust investor confidence. As Tether continues to expand its team and enhance compliance measures, it remains a pivotal player in the evolving crypto landscape.
Comments