Tether’s USDT Market Cap Reaches Record High Despite Regulatory Concerns

Tether, the leading stablecoin issuer, has defied regulatory concerns and reached a new milestone with its USDT market capitalization. Despite ongoing scrutiny over its reserves and regulatory challenges, Tether’s market cap has exceeded its previous all-time high of $83.2 billion, as announced on June 1.

According to data from DeFillama, a significant portion of USDT’s circulating supply, 42.86 billion tokens, resides on the Tron blockchain, while Ethereum holds 33.37 billion tokens. Furthermore, Tether has extended its presence to various blockchain networks, including Binance Smart Chain, Polygon, Solana, Avalanche, among others.

Tether’s USDT stablecoin has experienced substantial growth in 2023, as it has added approximately $17 billion to its market capitalization. During this period, its market dominance peaked at 64.45%, reaching a two-year high, according to DeFillama’s data. Tether’s first-quarter performance was strong, leading the company to announce plans to invest its profits in Bitcoin. Moreover, Tether expanded its operations into Bitcoin mining and integrated its USDT stablecoin into the digital payments platform Strike, further fueling its growth.

Despite Tether’s success, concerns persist regarding its transparency and regulatory compliance. The collapse of Terra’s algorithmic stablecoin and subsequent failures of several crypto-related firms have brought increased regulatory attention to Tether. Reports have highlighted issues with the transparency of its reserves, and some hedge funds have even placed bets on its potential collapse.

A former SEC official, John Reed Stark, has referred to Tether as a “mammoth house of cards” and urged regulators to ban it, stating that its quarterly attestation falls short of a proper audit. Nonetheless, Tether’s remarkable achievements stand out amidst the regulatory challenges faced by its main competitors, such as Binance USD (BUSD) and USD Coin (USDC). Tether remains steadfast in asserting its lack of exposure to collapsed crypto firms and continues to emphasize its transparent business practices.