United

USDC

BUSD

Coin

Tether&#8217;s USDT stablecoin has achieved a remarkable milestone, reaching a new all-time high (ATH) market capitalization of over $83 billion. This achievement comes at a time when other stablecoin issuers are grappling with regulatory challenges, highlighting the dominance of USDT in the market.
<figure id="attachment_21823" aria-describedby="caption-attachment-21823" style="width: 1204px" class="wp-caption alignnone"><img decoding="async" class="wp-image-21823 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart.webp" alt="USDT market cap chart" width="1204" height="570" srcset="https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart.webp 1204w, https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart-300x142.webp 300w, https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart-1024x485.webp 1024w, https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart-768x364.webp 768w, https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart-750x355.webp 750w, https://crypto.ro/en/wp-content/uploads/2023/06/USDT-market-cap-chart-1140x540.webp 1140w" sizes="(max-width: 1204px) 100vw, 1204px" title="Tether&#039;s USDT stablecoin surges to record market cap as competitors face regulatory hurdles 1"><figcaption id="caption-attachment-21823" class="wp-caption-text">USDT market cap chart | CoinMarketCap</figcaption></figure>
Changpeng &#8220;CZ&#8221; Zhao, the CEO of cryptocurrency exchange Binance, recently drew attention to <a href="https://crypto.ro/en/cryptocurrencies/binance-usd/">Binance USD (BUSD)</a>, a regulated stablecoin issued by Paxos.
In a tweet, CZ revealed that the New York Department of Financial Services (NYDFS) had capped BUSD at $23 billion, with its current market cap sitting at $5 billion. Since this cap was imposed, <a href="https://crypto.ro/en/cryptocurrencies/tether/">USDT</a> has experienced significant growth.
<blockquote class="twitter-tweet">
BUSD, a fully regulated stablecoin, was &#8220;capped&#8221; (no new minting) by NYDFS at $23b. Now at $5b market cap.
Since then, USDT has seen tremendous growth. <a href="https://t.co/KqBkDK71WS" rel="nofollow" target="_blank">https://t.co/KqBkDK71WS</a>
— CZ <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f536.png" alt="🔶" class="wp-smiley" style="height: 1em; max-height: 1em;" /> Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1664188463950749696?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 1, 2023</a></blockquote>
The NYDFS previously ordered Paxos to cease new issuances of BUSD due to violations of security laws. This regulatory scrutiny has put stablecoin competitors, including <a href="https://crypto.ro/en/cryptocurrencies/usd-coin/">Circle&#8217;s USD Coin (USDC)</a> and BUSD, at a disadvantage.
<a href="https://crypto.ro/en/news/circle-pledges-to-maintain-11-ratio-of-usdc-stablecoin-with-u-s-dollar/">Circle-issued USD Coin (USDC)</a>, the second-largest stablecoin, currently has a market cap of $28.8 billion, representing a substantial difference of over $50 billion compared to USDT. It is worth noting that USDC briefly approached the market dominance of USDT in June 2022, reaching an ATH market cap of $55.8 billion.
Both USDT and USDC faced challenges during the prolonged bear market of 2022, resulting in declines in their market caps following their previous highs. However, USDT has demonstrated resilience and regained higher market dominance, while USDC&#8217;s market cap has decreased by almost half.
The primary reason for the decline in market share of these stablecoins is increased regulatory scrutiny from the United States and the U.S. banking crisis. After the ban on new BUSD minting, its market cap fell dramatically.
USDC faced its own crisis when the <a href="https://crypto.ro/en/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank/">Silicon Valley Bank</a>, where the stablecoin issuer held approximately $3.3 billion in reserves, collapsed. This event led to market panic and a temporary depegging from the U.S. dollar. Although USDC regained its peg the following day, the incident had a lasting impact on its market cap as users converted their USDC to other stablecoins out of fear.
As Tether&#8217;s USDT reaches new heights, the challenges faced by its competitors serve as a stark reminder of the regulatory hurdles that can significantly impact the stablecoin market.

Tether’s USDT stablecoin surges to record market cap as competitors face regulatory hurdles

crypto.ro global

Other articles published on Jun 1, 2023

Ripple (XRP) Witnessed Historical Surge in Address Activity

Bitcoin Price Analysis: 7.1% Weaker in May - 2 June 2023

Ripple’s XRP and Linear Finance’s LINA: An Analysis of Altcoin Market Trends

Binance Is Reportedly Conducting Large Scale Layoffs

WEMIX3.0 Mainnet Applepie Hard Fork (v0.10.4) Code Release

How to farm AiM Token?

Join our free newsletter for daily crypto updates!