Tether's USDT, the largest stablecoin today, continues to rise and consolidate its dominance in the market. According to data from Tether, USDT's market capitalization is approaching $120 billion for the first time.

Tether's USDT Reaches Nearly $120 Billion

Earlier this week, Tether issued another 1 billion USDT on the Ethereum blockchain, bringing USDT's market capitalization to $119 billion. According to blockchain platform SpotOnChain, Tether has issued a total of 35 billion USDT over the past year.

This growth solidifies USDT’s position as the largest stablecoin today. Notably, Circle’s USDC, USDT’s closest competitor, is still much smaller, accounting for less than a third of Tether’s market share.

Total Tether in Circulation | Source: Tether

As of Q2 2024, Tether holds over $97 billion in US Treasury bonds and repurchase agreements, making Tether the 18th largest holder of US Treasury bonds in the world, surpassing countries such as Germany, UAE, and Australia.

Stablecoins have become one of the most practical applications of cryptocurrencies, providing a stable alternative to volatile digital assets. These assets have been widely adopted in emerging markets like Nigeria, where people increasingly rely on them for savings, payments, and cross-border transactions.

Widespread adoption has helped Tether thrive, with more than 350 million USDT users globally. This widespread adoption has been a significant boon to Tether's business model, generating more than $400 million in revenue in the past 30 days alone, according to data from Token Terminal.

Additionally, Tether has expanded its investments into areas such as agriculture and restructured into four divisions: finance, data, education, and energy. This diversification allows Tether to increase its USDT distribution and invest in projects such as AI and Bitcoin mining.

Despite its success, Tether has faced some criticism. Consumers’ Research has expressed concerns about potential risks in Tether’s business model, particularly those that could affect users. Additionally, many market observers have voiced alarm over the company’s reserves.