Tether (USDT), the leading stablecoin pegged to the dollar, reached a market capitalization of $150 billion, consolidating its dominance in the crypto ecosystem.
With this figure, it positions itself as the largest fiat-backed asset by market capitalization. Its circulation continues to rise, driven by its strong presence in key blockchain networks such as Ethereum and Tron. Despite competition from rivals like Circle's USDC, USDT continues to expand its market share.
Currently, there are 150.339 billion USDT in circulation, according to the latest update on the firm's website. In its last report, the company states that 81.49% of its reserves are held in highly liquid assets such as cash and U.S. Treasury bills. This ensures the 1:1 peg of Tether to the dollar.
At the time of writing this note, the crypto market has a value of $3.39 trillion, according to figures published by CoinMarketCap. This means that USDT alone represents 4.43% of the total. However, a deeper look indicates that the value of Tether and its importance among stablecoins is greater. Tether represents 61% of the entire stablecoin market.
Despite the competition, Tether surpasses $150 billion.
Thanks to the development of the DeFi sector and various initiatives, USDT has established itself as one of the most well-known financial vehicles. The growth of USDT has been sustained over time, largely due to the development of blockchains like Tron. Only on the Tron network, over $73.700 billion is transacted, according to Tether's website.
In second place is the Ethereum network, which holds $71.832 billion. And lastly, Solana, with only $1.951 billion in circulation. Lesser-known players like Ton with $998 million and Aptos with $735 million stand out.
A fundamental factor in studying the large trading volumes of USDT are the platforms operating on these chains. Initially, we recognize Tron and Ethereum as the preferred ones for the DeFi industry. This provides us with a first reading on the development and weight of USDT in the industry overall.
Can Tether's reign be maintained?
However, we must ask ourselves, how long can Tether maintain the crown? The current market has shown sharp changes when least expected. An important catalyst for change could be institutional adoption, a relatively new vehicle that has gained media attention following the arrival of the Trump Administration.
A higher degree of institutional adoption, particularly in the United States and Europe, will result in greater influence for stablecoins like USDC. This is because there are regulations against USDT in Europe. If this is the case, Tether's position would be threatened with a significant market share being diluted among participants.
New questions arise: Is the management of assets really transparent? Is it safe to use USDT, especially after incidents like the collapse of Terra and LUNA, to mention just one case? To address these doubts, Tether relies on an external auditing and advisory firm that publishes a detailed report on its reserves and operations every quarter.
