Tether USDt

USDC

BUSD

Terra

Note

<p>Tether&#8217;s stablecoin (USDT) market capitalization reached $81.5 billion on Thursday, its highest level since the Terra collapse in May 2022. The asset is now just $2 billion, shy of its all-time high of $83.4 billion, which it achieved on May 1 last year.</p>



<h2 id="tether-8217-s-market-share-reaches-a-two-year-high-of-63">Tether&#8217;s market share reaches a two-year high of 63%</h2>



<p>Since the beginning of 2023, the company has minted $15 billion in new USDT, coinciding with a nearly 15% increase in the stablecoin&#8217;s market share. This growth is partly due to the struggles faced by its closest competitors, Circle&#8217;s USD Coin (USDC) and Paxos-issued Binance USD (BUSD), which experienced a disproportionate number of their on-chain value redemptions for dollars after separate disputes. Tether&#8217;s market share now stands at 63%, the highest point in two years.</p>



<p>Over a billion USDT was minted on Thursday, though it has not yet entered circulation, as Tether CTO Paolo Ardoino shared in a tweet. While the new inventory is intended for Ethereum, the majority of USDT resides on the Tron blockchain, with approximately 45 billion tokens, as reported by Tether Limited&#8217;s transparency page.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.</p>&mdash; Paolo Ardoino 🍐 (@paoloardoino) <a href="https://twitter.com/paoloardoino/status/1649160292947877888?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 20, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>USDT issued on other blockchain networks, including Algorand, Avalanche, Bitcoin Cash&#8217;s Simple Ledger Protocol (SLP), EOS, Kusama, Liquid Network, Omni, Polygon, Tezos, Solana, and Statemine, make up only a small portion of the total supply.</p>



<h2 id="house-financial-services-subcommittee-addresses-tether-8217-s-dominance-and-regulatory-concerns">House Financial Services subcommittee addresses Tether&#8217;s dominance and regulatory concerns</h2>



<p>This week, Tether was among the topics discussed during a House Financial Services subcommittee hearing on stablecoins in Washington, D.C., where the main focus was on the absence of federal regulations for stablecoin issuers in the United States.</p>



<p>In response to a question from Rep. Warren Davidson (R-Ohio) about Tether&#8217;s dominance, witness Austin Campbell attributed it to the stablecoin&#8217;s &#8220;first mover advantage&#8221; and its status as an &#8220;entrenched incumbent.&#8221; Campbell, an adjunct assistant professor of business at Columbia Business School, also highlighted the benefits Tether enjoys by being based outside the United States, stating, &#8220;Tether has not faced the same kind of regulatory uncertainty.&#8221;</p>



<p>He added that the lack of transparency regarding Tether&#8217;s reserves puts users at risk but noted that Tether remains the default option when others face challenges, as there is demand for dollars on a blockchain.</p>



<p>Davidson described Tether as a &#8220;time bomb&#8221; and concluded that the real opportunity lies in creating legal clarity to facilitate stablecoin issuers&#8217; operations within the United States.</p>



<p>Although Tether has not yet issued its quarterly attestation for Q1 2023, its continued growth in the stablecoin market highlights market participants&#8217; confidence despite negative headlines and Congressional concerns. In a<a href="https://tether.to/en/more-outdated-allegations-from-the-wsj" rel="nofollow noopener" target="_blank"> blog post</a>, Tether referred to a report on the company as &#8220;outdated, inaccurate, and misleading&#8221; and maintained that it operates under substantial financial regulations.</p>

Tether’s USDT market capitalization approaches record level as market share grows

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