Ethereum

Northern

<ul>
 <li><em>USDT’s market capitalization increased 37% YTD to $91 billion.</em></li>
 <li><em>USDT added 4 billion in its excess reserves throughout 2023.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/tether" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Tether [USDT]</a> negotiated 2023’s bear market with great aplomb to solidify its position as the largest and most popular stablecoin.</p>
<p>USDT’s market capitalization increased 37% year to date (YTD) to $91 billion, as investors reposed their trust in the face of unfavorable signals from other stablecoins.</p>
<div id="attachment_360895" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-360895" decoding="async" class="size-full wp-image-360895" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd.png" alt="" width="1800" height="1013" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd.png 1800w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd-300x169.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd-1024x576.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd-768x432.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_tether-market-cap-usd-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"></a>
 <p id="caption-attachment-360895" class="wp-caption-text">Source: Glassnode</p>
</div>
<h4>USDT maintains its shine</h4>
<p>Barring the odd incident, USDT held firm to its value of $1 even as some top players like <a href="https://ambcrypto.com/search/USDC" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">USD Coin [USDC]</a> and <a href="https://ambcrypto.com/search/DAI" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">DAI</a> witnessed their worst depegs this year.</p>
<p>Moreover, USDT’s exchange supply ratio steadily increased in the second half of 2023, AMBCrypto observed using CryptoQuant’s data.</p>
<p>For the uninitiated, the metric measures the ratio of tokens reserved in exchange wallets relative to the total supply of the token.</p>
<p>Typically, a spike in stablecoin exchange reserves indicates strong buying pressure and bullish sentiment in the market. This is because most traders would use stablecoins to enter and exit trades on exchanges.</p>
<div id="attachment_360897" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-360897" decoding="async" class="size-full wp-image-360897" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges.png" alt="" width="2560" height="1612" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges-300x189.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges-1024x645.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges-768x484.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges-1536x967.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Tether-USDERC20-Exchange-Supply-Ratio-All-Exchanges-2048x1290.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 <p id="caption-attachment-360897" class="wp-caption-text">Source: CryptoQuant</p>
</div>
<p>Upon further analysis using <a href="https://defillama.com/stablecoin/tether" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">DeFiLlama</a>, <a href="https://eng.ambcrypto.com/search/TRON" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Tron [TRX]</a> was found to be the biggest home for USDT, accounting for nearly half the supply.</p>
<p>With over 40% of USDT supply, <a href="https://eng.ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum [ETH]</a> was the second-largest network.</p>
<h4>CEO divulges on important developments</h4>
<p>Apart from this, USDT added 4 billion in its excess reserves throughout 2023, Tether CEO Paulo Ardoino <a href="https://x.com/paoloardoino/status/1739707745106894985?s=20" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">revealed</a> on X (formerly Twitter).</p>
<p>As explained by himself, excess reserves are the company’s undistributed dividends, which it keeps on top of the 100% reserves that Tether maintains to back the different tokens it offers.</p>
<p>Tether uses this capital cushion to provide “further stability and resiliency” to the ecosystem.</p>
<p>Moreover, the CEO talked about a myriad of projects that Tether invested in, using a portion of its profits. Some key projects outlined were Holpunch, Synonym, Northern Data, and Tether Energy.</p>
<p>Tether Energy, especially, has taken giant strides in the <a href="https://ambcrypto.com/search/Bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> mining industry. The CEO said that significant investments have been made into sites in emerging markets across the globe.</p>

Will USDT end 2023 on a winning note?

AMBCrypto

Other articles published on Dec 28, 2023

Crypto Liquidations Hit $230M; Celestia (TIA) & InQubeta (QUBE) Register Massive Gains

South Korean Police Shut Down ‘Gangsters’ $32m Crypto Scam Ring’

India Cracks Down On 9 Overseas Crypto Exchanges, Binance And Kraken Among Targets

Analyst: Cardano looking to break out of holding pattern

What Drives MicroStrategy To Increase Bitcoin Holdings

Massive Solana (SOL) Whale Movements Amid 80% Monthly Price Upswing

Join our free newsletter for daily crypto updates!