- USDT reached its highest point of market capitalization since Terra’s collapse.
- Tether’s CTO believes that USDT will be the safest option for users.
The crypto market’s leading stablecoin provider, Tether (USDT), reached a market capitalization of around $81.5 billion on Thursday. It is the highest point of its market capitalization since Terra’s collapse in May 2022. USDT is just $2 billion behind to surpass its all-time high of $83.4 billion, which it reached on May 1 last year.
Recently, Whale Alert, the cryptocurrency analyzer and tracker, reported that the Tether Treasury minted over a billion USDT tokens on the Ethereum network. Tether’s CTO, Paolo Ardoino, tweeted that the newly minted USDT tokens have not yet entered circulation. 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 swaps.
That made Tether reach $15 billion in newly minted USDT tokens since the start of 2023. By this, the stablecoin has witnessed an increase of around 15% in its market capitalization. According to the data, USDT’s market share stands at 63%, which is its highest point in the last two years.
Tether as the Alternative Solution
Ardoino mentioned USDT as the alternative solution to failing banks, and he believes it has been the safest option for users who want to divert funds away from the bank. However, Tether has not yet released its quarterly attestation for Q1 2023, but its continuing expansion in the stablecoin sector shows the market’s confidence.
Moreover, Tether is one of the topics discussed in this week’s House of Financial Services subcommittee hearing on stablecoins in Washington, D.C. The discussion is about the lack of federal rules for stablecoin issuers in the United States.