Glassnode: Tether (USDT) Dominance Reaches 71% As Market Cap Surges To Record $95B

Tether, the entity responsible for the USDT stablecoin, has experienced a surge in market cap from 50% to an impressive 71% throughout 2023, as reported by Glassnode.

Meanwhile, Tether’s growth has managed to attract bad actors such as criminals, money launderers, and scammers in Southeast Asia, according to a United Nations report published on Monday.

Tether (USDT) Surpasses $95 Billion Market Cap

In the latest development in Tether’s ascent, on the evening of January 12, the company generated an additional $1 billion, which increased the market capitalization of USDT to an unprecedented $95 billion.

See Also: Tether CEO Paolo Ardoino Celebrates USDT’s $91.5B Market Cap

In contrast to Tether’s exponential growth, its closest competitor, Circle, responsible for the USDC stablecoin, recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC).

Despite this move, Circle has only 27 billion tokens in circulation, starting 2023 with a total of 48 billion USDC, significantly less than Tether’s dominant market position.

Furthermore, Tether’s financial success extends beyond stablecoins, with its Bitcoin investment portfolio valued at approximately $3 billion as of January 4, 2024, proving to be a substantial source of profit.

Paolo Ardoino, the long-serving Chief Technology Officer (CTO), assumed the CEO role at the end of the previous year, succeeding Jean-Louis van der Velde. 

Since taking on this new role, Ardoino has actively strengthened ties with U.S. law enforcement agencies.

The move is exemplified by collaborative efforts leading to freezing wallets linked to the U.S. Office of Foreign Assets Control’s (OFAC) sanctions list, resulting in the seizure of over $435 million in illicit funds.

Tether (USDT) Use Surges Among Bad Actors

Meanwhile, some reports claim that Tether’s widespread use has become evident in the escalating volume of cyber fraud, money laundering, and underground banking cases in Asia.

See Also: United Nations Says Tether USDT Is A Prominent Choice For Fraud In Southeast Asia

These cases encompass a range of schemes, including “sextortion,” a form of blackmail that threatens to disclose sexual content or personal information, and “pig butchering,” a socially engineered romance aimed at building trust before extracting money.

While criminal groups in Asia are increasingly utilizing USDT, Tether has demonstrated a willingness to cooperate with U.S. law enforcement and regulatory authorities. According to data from Dune Analytics, Tether has taken proactive measures by banning more than 1,260 addresses linked to illicit activities. The total USDT in these banned wallets has exceeded $875 million.