Wed. Apr 17th, 2024

The leading stablecoin provider of the crypto market, Tether (USDT), reached a market capitalization of around $81.5 billion on Thursday. It is the highest point in its market capitalization since the Terra collapse in May 2022. USDT is just $2 billion behind to surpass its all-time high of $83.4 billion, which it hit on May 1 of last year. Recently, Whale Alert, the cryptocurrency analyzer and tracker, reported that Tether Treasury minted more than 1 billion USDT tokens on the Ethereum network. Tether CTO Paolo Ardoino tweeted that the newly minted USDT tokens have not entered circulation yet. He added that it is an authorized but not issued transaction. This means that Tether will use the newly minted tokens as inventory for future issuance and other exchanges. That saw Tether hit $15 billion worth of newly minted USDT tokens since the beginning of 2023. Because of this, the stablecoin has witnessed around a 15% increase in its market capitalization. According to datathe USDT market share stands at 63%, which is its highest point in the last two years.

USDT Market Cap Rising: Is It Now a Fix?

Ardoino mentioned USDT as the workaround for failing banks, and believes it has been the safest option for users who want to divert funds from the bank. However, Tether has yet to release its quarterly certification for the first quarter of 2023, but its continued expansion into the stablecoin sector shows the confidence of the market. The House Financial Services subcommittee discussed Tether at its stablecoin hearing in Washington, DC this week. During the discussion, the absence of federal regulations for stablecoin issuers in the United States was addressed.

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