Tether’s USDT has reached another peak, surpassing a market capitalization of $100 billion.
According to CoinGecko data, Tether (USDT) has risen 9% since the beginning of the year and briefly reached the $100 billion level on March 4.
By comparison, USDT still has a market advantage of more than $71 billion over USD Coin (USDC), which was issued by Circle and has also seen growth this year. Nevertheless, it should be noted that Tether’s market capitalization of $100 billion has yet to be disclosed by other data sources such as CoinMarketCap.
Tether’s market capitalization at the level of British oil giant BP
With a market capitalization at the level of British oil and gas giant British Petroleum and slightly higher than e-commerce giant Shopify, Tether has become a key player in the cryptocurrency market.
According to Tether‘s official website, stablecoin is pegged to the value of the U.S. dollar and is available in 14 different blockchains and protocols.
It is currently the third largest cryptocurrency in terms of market capitalization, second only to Ether and Bitcoin.
Tether has become an indispensable tool for cryptocurrency traders seeking stability in a volatile market. Its position has grown as a result of its status as a blockchain-based option and has attracted a significant number of users.
Over the past month, the cryptocurrency market has surged, with its value exceeding $2 trillion. In particular, the price of Bitcoin has risen by fifty percent, reaching levels not seen in two years.
The company behind USDT, also known as Tether, says it protects each token with its reserves, which are independently controlled, consisting mainly of yielding U.S. Treasury bills(T-Bills).
Tether reported a record quarterly profit of $2.85 billion in the fourth quarter of 2023. The company has become one of the world’s largest purchasers of US government debt.
Tether controversy
Concerns persist in the cryptocurrency industry over the quality of USDT’s backing assets, despite its success. Tether has responded by taking steps to reduce its exposure to higher-risk assets.
The company decided to stop borrowing money from its reserves by the end of 2023. However, this goal was not fully achieved, as Tether still had $4.8 billion worth of loans on its books at the end of 2023.
The company says these loans are fully secured and intends to remove them in 2024. Interestingly, the Tron blockchain underpins more than half of the USDTs currently issued. A recent United Nations report highlighted Tron’s popularity in cyber fraud and money laundering in Southeast Asia.
The company denied the speculation, emphasizing cooperation with law enforcement and identification of its token.
Tether said in response to the UN report that by working with global law enforcement agencies such as the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI) and the United States Secret Service (USSS), it has achieved incredible monitoring capabilities that surpass traditional banking systems.
