While the capitalization of Tether's USDT stablecoin continues to increase, it now exceeds $120 billion. How does the market leader position itself against its competitors?
Tether's USDT widens its lead over competing stablecoins
First stablecoin on the market with a considerable lead, Tether's USDT now exceeds $120 billion in capitalization. This year alone, this capitalization has increased by more than 30%:
Figure 1 – Evolution of USDT capitalization
💡 How does Tether’s USDT stablecoin work?
To date, the asset is deployed on 16 different networks, although this liquidity is primarily concentrated on 2 blockchains. Indeed, Tron (TXR) comes first, with 61.5 billion USDT on its network, followed by Ethereum (ETH), with almost 54.5 billion USDT. The 3rd most represented blockchain is Avalanche (AVAX), with “only” 1.57 billion USDT.
According to CoinGecko data, all stablecoins on the market represent a capitalization of $173.78 billion. So, USDT alone represents 69% of said capitalization. For comparison, its competitor USDC from Circle weighs 20% in this balance:
Figure 2 – Capitalization of the main stablecoins on the market
In terms of its diversification, Tether also offers several stablecoins backed by other values, such as the euro, gold, the yuan or the Mexican peso. As the ranking above shows, it is his XAUT which comes in second positionwith the equivalent of approximately 246,500 ounces of gold for a capitalization of nearly $674 billion.
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As for its other activities, internal sources revealed to Bloomberg last week that Tether was now exploring investment opportunities in the commodities sector. More broadly, the company has also been actively investing in Bitcoin (BTC) mining for more than a year.
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Source: CoinGecko
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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