Tether (USDT) has a market cap of $83.2 billion reaches. This has made up for all the losses the stablecoin made as a result of the Terra imploding in May 2022. With the Terra implosion, the project lost approximately $18 billion in market cap.
The advance of Tether is special, because the rest of the stablecoin market is currently struggling.
Falling market
Over a period of 14 months, the stablecoin market has been declining. Tether doesn’t seem to care, though, as it hit a new all-time high in market cap yesterday. At the time of writing, the stablecoin market is worth a whopping $129 billion.
That just shows how big the role is that this type of coins plays in the crypto world. After all, stablecoins are the way to step out of the market if you expect declines. Over the years, the need for that type of coins has only increased.
Tether has mostly benefited from misery among its competitors in recent months. For example, at USDC, which was hit by the collapse of its banking partner Silicon Valley Bank in March of this year.
Furthermore, Paxos was told by the Securities and Exchange Commission (SEC) that they are not allowed to bring any new Binance USD (BUSD) to market. Thus, competition from Tether took a beating while USDT continued to grow.
Doubts about Tether
Despite the fact that the market cap of Tether continues to grow and has now reached a new all-time high, the doubts about the company never completely disappear. Year after year, Tether has been filled with criticism over the company’s alleged lack of transparency.
Including issuing risky loans to shadowy parties. To counter such rumors, Tether now publishes monthly reports on the company’s reserves.
The stablecoin issuer is trying to put an increasing share of its reserves in US government bonds, on which an excellent return can now be achieved. “The emergence of Tether shows that the stability of a stablecoin is much more important than transparency,” thus Conor Ryder of Kaiko.
