Tether USDT Market Share Grows 20% to 75% in Two Years
Date: 2024-09-17 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Tether, a dollar-backed stablecoin, now controls two-thirds of the entire stablecoin market, thanks to its significant rise in popularity over the past two years.
Tether USDT's market share has grown more than 20% over the past two years, according to Token Terminal, and now accounts for over 75% of the total stablecoin market.
Stablecoins are the primary channel for fiat money to enter the crypto world. The growth in stablecoin market cap suggests that investors are increasingly eager to buy cryptocurrencies.
Tether Made $400 Million in Last 30 Days
The issuer of the world’s largest stablecoin, Tether, made about $400 million in the 30 days ending Sept. 16, according to Token Terminal.
The revenue boost comes after a record-breaking first quarter of 2024, when Tether made more than $4.5 billion in profit.
Notably, the majority of the profit, $3.52 billion, came from the company’s investments in bitcoin and gold, with the remaining $1 billion tied to operating expenses.
The data comes amid significant growth for the company, and just days after Tether named former PayPal regulatory affairs chief Jesse Spiro as its new head of government affairs on Sept. 13.
USDT on Exchanges Reaches Record High of $20.3 Billion
Tether USDT balances on cryptocurrency exchanges reached a record high of $20.339 billion on August 13, signaling that investors are preparing to use these stablecoins to buy crypto assets.
Historically, Tether balances on exchanges have increased during both bear and bull markets.
In bear markets, rising USDT reserves often indicate that traders are converting volatile cryptocurrencies into stablecoins, seeking to preserve capital amid market uncertainty. In bull markets, USDT accumulation may indicate that traders are preparing stablecoins to buy cryptocurrencies when prices decline.
The world's largest stablecoin issuer has grown significantly over the past two years. Tether plans to double its headcount to 200 employees by mid-2025, with a particular focus on expanding its compliance team.
