Tether (USDT) is the biggest stablecoin with a market cap of $140 billion. In the last year, USDT’s supply grew by $50 billion, further elevating the sector’s potential. However, Tether controls a majority of trading volumes and overall market presence within the crypto arena as competition grows.
USDT Dominates the Stablecoin Market with 67% Share
Currently, stablecoin’s market size is $208 billion, with USDT making up 67.31%. That outpaces growth in competitors such as Circle’s USDC, which has grown significantly recently. Expansion in use signals that Tether is a key liquidity provider for the crypto market as a whole.
First, we observe that Ethereum and Tron are the key networks used for USDT supply distribution. Of those 140 billion tokens, 76.92 billion are circulating on Ethereum, and 61.75 billion are on Tron. The rest of the 138.67 billion USDT is spread across all other platforms except these two blockchains.
Tether Supply Grows as Ethereum Regains Traction
Ethereum has reclaimed the network for USDT issuance. On December 16, 54.94% of Tether’s circulating supply is on the Ethereum blockchain. This is a significant switch from the preferred network that Tron was earlier in 2024.
USDT’s supply increased to 20 billion tokens over the last 40 days, indicating monumental demand. As the months have passed, Tether’s supply continues to grow, expanding by 10.4% just this month alone—not something one would see if investor confidence wasn’t there. It proves once again that the network is bouncing back and gaining traction.
USDT first gained popularity by dominating origination on the Omni chain, but it created a boom when the company moved on to Ethereum. Finally, Tron gained some traction because it cost the user significantly less to transact and settle transactions faster. But Ethereum’s comeback has reemphasized the importance of its stake in the stablecoin’s supply balance.
USDC and USDE Grow But Trail Behind USDT
The supply of Circle’s USDC continues to grow, rising 15.3% in the month to date. The performance of Ethena’s yield-bearing stablecoin USDE grew by 87.1% in the monthly period, testifying increased pull. While these are substantial gains, both stablecoins are far from Tether’s market cap and trading volumes.
The introduction of Ethena’s new stablecoin, backed by Blackrock’s BUIDL assets, is ramping up the competition further. Yet, USDT continues to attract the largest share of liquidity and trading. Its unmatched trading volumes keep it ahead and could even outpace Bitcoin’s activity on significant exchanges.
Other emerging projects and one of Ripple’s fiat-pegged stablecoins seek to dethrone USDT. However, tether benefits from its years of established market trust and widespread adoption. USDT is very widely recognized, making it difficult for new entrants to have a significant impact.
Conclusion
USDT’s supply growth is a testament to the growing demand for stable assets in crypto markets, and USDT is one of the major beneficiaries. Tether enables investors to use funds to hedge against volatility, ensuring price stability during uncertain conditions. Because of this role in lubricating trading and liquidity across exchanges, its supply growth is its lifeblood.
Yet, like any market that connects crypto, it is inherently volatile, which could influence Tether’s journey in the future. However, supply growth in and of itself does not guarantee long-term stability or value retention. New uncertainties may emerge due to regulatory developments and new challenges in the stablecoins landscape.
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FAQs
What is Tether’s current market cap (USDT)?
Tether’s market cap currently stands at $140 billion, making it the largest stablecoin.
What share of the stablecoin market does USDT hold?
USDT controls 67.31% of the $208 billion stablecoin market.
Which networks dominate USDT’s supply distribution?
Ethereum and Tron lead USDT supply, with 76.92 billion on Ethereum and 61.75 billion on Tron.
