Tether’s USDT hits first-time $100B valuation record as BTC hits ATH

USDT, the world’s largest stablecoin by market cap, has hit a valuation of $100 billion for the first time. The new record now extends the gap between USDT and USDC, the second-largest stablecoin currently at a $28.8 billion market cap. According to current figures, USDT exceeds USDC’s market cap by $72 billion.

USDT crossed $100 billion on Monday, March 4, upholding the stablecoin’s position as the world’s third-largest cryptocurrency. At $100 billion, USDT’s market cap exceeds the combined valuation of Shiba Inu (SHIB), Cardano (ADA), and USDC.

USDT Might See More Network Activity

The rise in USDT’s market cap is advantageous to the stablecoin as it increases its liquidity in the market. This benefits merchants and service providers like crypto casino sites that accept USDT payments and allow users to place wagers using the stablecoin, as, according to Michael Graw, it’s one of the most popular cryptos for gambling with. The increased liquidity will also lead to heightened confidence in USDT, gradually erasing any reluctance traders may have to buy or use the asset.

Interestingly, USDC has recorded more growth than Tether’s stablecoin, according to Coingecko. Data shows that as of February 27, USDC’s market cap had grown from about $24.4 billion on December 1, 2023, to $28.5 billion, a 14.3% billion increase. On the other hand, USDT climbed from $89 to $98 billion in the same period, a 9% increase in valuation.

USDT issuer Tether has repeatedly assured that each token is backed by robust reserves comprising Treasury BIlls. In the fourth quarter of last year, USDT announced a record profit of $2.85 billion, with $1 billion earned from Treasury Bills. The fourth-quarter attestation published in January also noted that the rest of the record-breaking profits came from a rise in its Bitcoin and Gold reserves. The company’s total net profit for 2023 came in at $6.2 billion. As of December 31, 2023, Tether’s excess reserves had hit $5.4 billion, more than enough to cover the outstanding $4.8 billion the company had in secured loans.

USDT’s recent success comes as most of the crypto sector trades in green. Current

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Author: AMBCrypto Team

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