Emmanuel Ochayi
Tether’s Market Capitalisation Surpasses $115 Billion
Tether’s USDT has achieved a milestone, with its market capitalisation crossing the $115 billion mark.
This achievement solidifies Tether as the third-largest cryptocurrency by market capitalisation and the dominant stablecoin in the industry, controlling over 70% of the market share.
Join our WhatsApp ChannelThe rapid growth in market capitalisation reflects the increasing reliance on USDT as a stable and trusted digital asset.
CEO Paolo Ardoino’s Announcement
Paolo Ardoino, the CEO of Tether, made the milestone public through a subtle post on X (formerly Twitter) to his 235,000 followers.
In a statement to Crypto. News, Arduino elaborated on the significance of this milestone. He emphasised that this achievement highlights the growing importance of stablecoins in the crypto industry.
“USDT’s recent surge to a $115 billion market cap underscores its increasing adoption as the ‘digital dollar of choice’ for a wide range of transactions and use cases beyond just cryptocurrency trading,” Ardoino stated.
He further added, “We’re seeing a shift in how digital assets are used, with USDT increasingly serving as an alternative to traditional savings and checking accounts, particularly in emerging markets grappling with currency devaluation.”
Implications of the Growing Market Capitalisation
The increasing market capitalisation of Tether is more than just a number; it reflects the growing trust and adoption of stablecoins by global crypto enthusiasts.
Unlike other volatile crypto assets, stablecoins like Tether offer a stable value, making them a preferred choice for daily transactions and holding funds.
Traders, in particular, favour Tether due to its stability, which allows them to avoid the wild price swings often seen in other cryptocurrencies.
According to data from Into the Block, Tether’s market capitalisation has increased by 40% since September 2023. This surge is indicative of the growing role that Tether plays in the global financial system, especially in regions where traditional banking systems are less reliable.
READ ALSO: Nigerian Banks’ Stocks Surge As Market Capitalization Hits N45trn Mark
Tether’s Activity on Major Exchanges
Blockchain analyst Lookonchain reported that around $1.3 billion worth of USDT was transferred to centralised exchanges such as Kraken, OKX, and Coinbase following a market crash last week.
This movement of funds further illustrates the critical role Tether plays in the crypto ecosystem, particularly during periods of market instability.
Tether’s transparency page reveals that the majority of USDT transactions occur on the Tron and Ethereum networks, which account for over 90% of the total USDT supply.
These networks have become the preferred platforms for Tether transactions due to their efficiency and reliability.
Challenges and Scrutiny
Despite Tether’s tremendous growth and success, the project has faced scrutiny over allegations of facilitating illicit activities.
Scammers and hackers have reportedly used USDT as a convenient tool for their operations, prompting Tether to implement precautionary measures.
To enhance transparency and security, Tether has started collaborating with Chainalysis, a blockchain analysis firm, to monitor USDT activity on secondary markets.
Looking Ahead: Tether’s Future Plans
Tether plans to double its workforce to 200 employees following its industry success. The company aims to bolster its financial department, which handles significant funds transactions regularly.
In addition to its financial growth, Tether is also expanding its educational initiatives. The company recently announced a partnership to promote blockchain education across five universities in the Ivory Coast, including Université Félix Houphouet-Boigny and Institut National Polytechnique Félix Houphouet-Boigny.
Tether’s USDT has also become the preferred means of payment for Nigerian remote workers and freelancers working for foreign firms. This growing adoption in Nigeria further underscores the stablecoin’s global reach and influence.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
