According to CryptoPotato, Tether (USDT) continues to dominate the stablecoin market, with its market cap reaching a new all-time high of $87.48 billion this week. Despite facing scrutiny regarding the authenticity and reliability of its reserves, USDT remains the third-largest digital asset globally, behind Bitcoin (BTC) and Ether (ETH). Over the past year, its market cap has increased by $22 billion, while its rival, USDC, has seen a decline of $21 billion in the same period.

USDC, issued by Circle, has failed to gain significant momentum in 2023. Its market cap peaked at $55 billion in June 2022 but has since steadily decreased, with a drop of approximately 45% since January 2023. At the time of writing, its market cap stands at $24 billion.

Tether's growth has been partially driven by growing demand in emerging and developing markets, with Brazil's revenue service agency revealing that USDT accounted for 80% of all cryptocurrency transactions in the country. The increasing enthusiasm among institutional investors for BTC, fueled by the anticipation of a potential Bitcoin ETF, has also contributed to the expansion of Tether.

According to an analysis by blockchain intelligence platform Santiment, there has been a notable rise in USDT transactions exceeding $100,000, surpassing 40,000 on a weekly basis. This increase mirrors activity not seen since March and recalls the heightened trading volume observed during Bitcoin's rise from $21,000 to $29,000 amid the global banking crisis. The indications depict a clear trend toward a resurgence in the crypto market.