Tether, the popular issuer of the USDT stablecoin, has achieved a significant milestone by reaching an all-time high in its market capitalization. Surpassing the previous record set in May 2022, Tether’s market cap now stands at an impressive $83.2 billion. Paolo Ardoino, the Chief Technical Officer of Tether, attributes this achievement to the increasing desire for financial autonomy and the unique benefits Tether tokens provide.
Ardoino highlights that Tether is crucial in offering a financial refuge for the unbanked population and assisting individuals in emerging markets to safeguard their purchasing power, even when their national currencies are experiencing devaluation. He emphasizes that these record-breaking numbers signify people’s eagerness to access financial freedom, and when presented with the opportunity, they readily embrace it. Tether tokens serve as a secure harbor for the unbanked and enable individuals in emerging economies to maintain their buying power, despite the challenges posed by currency devaluation. Tether’s resilience in volatile market conditions and its commitment to transparency has contributed to establishing trust among customers, resulting in the positive response witnessed.
Since its launch in October 2014, Tether’s USDT stablecoin has emerged as the most actively traded stablecoin, surpassing the combined trading volume of all other stablecoin offerings. In the first quarter of this year, the company reported a substantial net profit of $1.48 billion, significantly bolstering its reserves. Tether’s investments primarily consist of approximately 85% cash, cash equivalents, and other short-term deposits. The stablecoin issuer has further solidified its position as a reliable entity, with a promising outlook for the upcoming year, as it witnessed a 20% quarter-over-quarter increase in token supply and holds around $2.5 billion in excess reserves, exceeding the minimum reserve requirement of 100%.
Moreover, Tether recently announced its expanded presence in Georgia by investing in CityPay.io, a leading payment processing company operating in over 600 locations nationwide, including shops, hotels, and restaurants. This move highlights Tether’s commitment to extending its reach and accessibility.
While the stablecoin sector experienced a decline in May, with the total market capitalization reaching its lowest point since September 2021, Tether remains resilient amidst these market conditions. The sector’s market capitalization fell by 0.45% to $130 billion, marking the fourteenth consecutive month of decline. Additionally, the total trading volume of stablecoins decreased by 40.6% to $460 billion in May, registering the lowest monthly trading volume since December 2022, according to CCData’s Stablecoins & CBDCs report.
Despite these challenges, Tether’s record-breaking market cap and consistent growth demonstrate its position as a trusted and sought-after stablecoin issuer. With its unwavering focus on emerging markets and its commitment to expanding access to financial freedom globally, Tether is poised to continue its upward trajectory in the coming months.
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