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Tether’s (<a href="https://cryptoslate.com/coins/tether/">U</a><a href="https://cryptoslate.com/coins/tether/">SDT</a>) stablecoin supply has reached an unprecedented milestone, surpassing $84 billion for the first time. 
Data from CryptoSlate shows that USDT market capitalization has increased by around $1 billion during the last seven days amid the current market <a href="https://cryptoslate.com/bitcoin-jumps-4k-in-4-hours-as-it-touches-35k-on-blackrock-seeding-anticipation/">rally</a> fueled by optimism surrounding the possibility of a Bitcoin (<a href="https://cryptoslate.com/coins/bitcoin/">BTC</a>) spot exchange-traded fund (ETF). 
Tether’s CEO Paolo Ardoino <a href="https://x.com/paoloardoino/status/1716451658199114201?s=20">marked</a> the milestone with a terse “84B $USDt” post on social media platform X. 
<figure id="attachment_367605" aria-describedby="caption-attachment-367605" style="width: 100%" class="wp-caption aligncenter">
 <img class="size-large wp-image-367605" src="https://cryptoslate.com/wp-content/uploads/2023/10/Screenshot-2023-10-24-at-14.26.03-1024x583.png" alt="Tether market cap" width="1024" height="583" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/Screenshot-2023-10-24-at-14.26.03-1024x583.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/Screenshot-2023-10-24-at-14.26.03-300x171.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/Screenshot-2023-10-24-at-14.26.03-768x437.png 768w, https://cryptoslate.com/wp-content/uploads/2023/10/Screenshot-2023-10-24-at-14.26.03.png 1490w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption id="caption-attachment-367605" class="wp-caption-text">
 Tether market cap – Source: CoinMarketCap
 </figcaption>
</figure> 
USDT faced significant <a href="https://cryptoslate.com/alameda-research-may-have-minted-up-to-40b-of-tethers-usdt-report/">challenges</a> last year as its market capitalization dropped to $66 billion amidst a severe market downturn and the <a href="https://cryptoslate.com/recapping-10-major-crypto-events-from-2022-10-future-trends-for-2023/">collapse</a> of crypto firms such as FTX and Three Arrows Capital. During this period, questions arose about the stability of its reserves, with <a href="https://cryptoslate.com/tether-brushes-off-concerns-over-restarting-controversial-usdt-short-term-loan-services/">concerns</a> that it might be vulnerable to the broader market turmoil. 
<h2 id="why-tether-supply-is-rising">Why Tether supply is rising</h2> 
However, Tether weathered this storm and has managed to increase its token supply by approximately $18 billion this year. This growth can be attributed to the current favorable market environment and issues faced by its rivals, including Binance USD (<a href="https://cryptoslate.com/coins/binance-usd/">BUSD</a>) and USD Coin (<a href="https://cryptoslate.com/coins/usd-coin/">USDC</a>). 
Earlier in the year, the New York Department of Financial Services (NYDFS) <a href="https://cryptoslate.com/binance-processes-1b-withdrawals-amid-regulatory-scrutiny-on-busd/">directed</a> BUSD issuer Paxos to cease additional minting of the stablecoin. Later, the U.S. Securities and Exchange Commission (SEC) <a href="https://cryptoslate.com/seven-key-points-from-the-secs-charges-against-binance-and-binance-us/">classified</a> BUSD as a security in its lawsuit against Binance. 
As a result, many crypto investors turned away from BUSD, causing its supply to <a href="https://cryptoslate.com/binance-backed-busd-circulating-supply-drops-to-less-than-3b/">plummet</a> from its peak of $22 billion in November 2022 to approximately $2 billion as of press time. 
Conversely, USDC encountered difficulties in March when it was revealed to have exposure to the U.S. <a href="https://cryptoslate.com/contagion-from-svbs-collapse-highlights-need-for-banking-system-resilience-says-fed-official/">banking crisis</a>. 
The issuer, Circle, disclosed that it held a portion of USDC reserves at the now-failed crypto-friendly bank, Silicon Valley Bank. Following this revelation, USDC briefly <a href="https://cryptoslate.com/usdc-depeg-everything-we-know-so-far-as-contagion-spreads-from-tradfi-banking/">depegged</a> to as low as $0.87 before recovering. 
However, its circulation has steadily <a href="https://cryptoslate.com/usdc-in-circulation-fell-over-10-since-de-peg-event/">declined</a> despite the improving market conditions. 
These events helped to propel USDT to the forefront of the market, with its market dominance now surging to nearly 70%, according to DeFillama <a href="https://defillama.com/stablecoins">data</a>. 
The post <a rel="nofollow" href="https://cryptoslate.com/tether-supply-reaches-unprecedented-84-billion-amidst-etf-driven-bitcoin-rally/">Tether supply reaches unprecedented $84 billion amid ETF-driven Bitcoin rally</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Tether supply reaches unprecedented $84 billion amid ETF-driven Bitcoin rally

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