Tether's USDT Stablecoin Market Share Rises to Highest Level in 15 Months

USDT’s market share among stablecoins surpassed 54% on Monday, its highest level since November 2021.

AccessTimeIconMar 6, 2023 at 8:41 p.m. UTC
Updated Mar 9, 2023 at 3:47 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The dominance of Tether’s USDT is rising among stablecoins amid an ongoing shakeup of the $136 billion stablecoin market.

USDT’s market share among stablecoins surpassed 54% on Monday, data from CoinGecko shows. This is the largest market share Tether’s stablecoin has reached since late November 2021, after the crypto bull market reached its apex.

Tether’s gain came mostly at the expense of rival Binance USD, which has been in rapid decline since its issuer, Paxos, announced on Feb. 13 that it would halt minting new BUSD tokens due to pressure from the New York Department of Financial Services, the state’s top regulator. Since then, BUSD has shrunk below $9 billion from a $16 billion market capitalization.

USDT’s market capitalization has grown some $5.3 billion this year so far to $71.6 billion, with $3 billion of the gains after mid-February. Circle’s rival stablecoin, USD coin (USDC), has also gained $3 billion since the Paxos announcement; however, its $44 billion market cap is still lower than at the start of 2023.

Stablecoins have become the backbone of the crypto economy in recent years, ballooning to a peak market capitalization of$188 billion in May 2022. They peg their price stable to an external asset, such as the U.S. dollar, and serve as a facilitator for trading on exchanges and making transactions between central bank-issued fiat money and the digital asset world.

Tether’s position as issuer of the world’s dominant stablecoin defies its historically opaque reporting about its reserves backing the value of USDT and heavy scrutiny of its internal dealings. Last week, the Wall Street Journal reported that Tether used bank accounts accessed by falsified documents in 2018. In September, a New York judge ordered Tether to present financial records on USDT’s reserve assets in a lawsuit that alleges Tether conspired to issue USDT to prop up the price of bitcoin (BTC), CoinDesk reported.

USDT is the most traded cryptocurrency with some $27 billion of trading volume in the past 24 hours, according to CoinGecko, larger than BTC.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.