- USDT market cap surpasses $120 billion, signaling its growing dominance in stablecoins and global digital finance.
- Tether holds $118.4 billion in reserves, with $97.6 billion in U.S. Treasury, securing its stablecoin issuance.
Rising above a market cap of $120 billion, Tether’s USDT, the biggest stablecoin in the world, marks a major turning point. This amazing expansion not only emphasizes USDT’s supremacy in the stablecoin market but also its indispensible importance in the major crypto market.
According to Lookonchain, Tron and Ethereum are the main networks among the several blockchains that spread the great circulation of the stablecoin. On Tron, over 61.49 billion USDT, or 51.17%, is now circulating, and on Ethereum, 54.48 billion USDT, or 45.34%, is circulating.
The $USDT market cap exceeds $120 billion!
The current circulation of $USDT is 120.17B $USDT, of which 61.49B $USDT(51.17%) is circulating on #TronNetwork and 54.48B $USDT(45.34%) is circulating on #Ethereum.https://t.co/5Mzl43My0S pic.twitter.com/UUpm8FM4vC
— Lookonchain (@lookonchain) October 20, 2024
USDT Rising Demand Highlights Stablecoin Crucial Role in Volatile Markets
The rising market cap of USDT emphasizes the growing need for stablecoins as a secure haven amid the volatility of cryptocurrency. USDT offers traders and investors wishing to store their assets in a less volatile asset with stability and liquidity as a stablecoin linked to the US dollar stays inside the crypto ecosystem. USDT’s appeal—especially in times of market downturns—has helped it to grow exponentially.
Recent estimates show that USDT’s daily trading volume on Tron exceeded Visa’s average daily volume of $42 billion at $53 billion. This amazing success emphasizes how the financial environment is changing and shows how increasingly digital currencies are being accepted for major transactions.
Tron’s low transaction fees and effective network efficiency have made it the favored blockchain for USDT transfers, therefore confirming its leadership as the main platform for Tether. Conversely, Ethereum, once the most often used chain for USDT, has experienced less activity because of slower transaction speeds and higher gas fees.
Stablecoin Market Expansion Fuels Increased Liquidity and Trading Activity
Unquestionably, USDT’s impact on the larger crypto market is growing as its market cap keeps rising. More USDT in circulation usually indicates a boost in liquidity, which could result in more trading activity and maybe influence price swings for big cryptocurrencies like Bitcoin.
Rising stablecoin supplies have historically been connected to growing buying pressure since investors usually keep stablecoins like USDT before moving them into more erratic assets. Particularly in times of rising investor enthusiasm in cryptocurrencies, this flood of money can drive market rises.
Furthermore, supporting Tether’s supremacy in the stablecoin industry is its extensive application across several blockchains. With Tether holding more than 70% of the stablecoin market share, the overall market cap of these coins has expanded noticeably.
This degree of control begs serious issues regarding Tether’s influence on market liquidity and its part in maintaining the crypto ecosystem stable.
But it also presents certain hazards since Tether’s capacity to keep its peg to the US dollar becomes progressively more important for the stablecoin market. Any disturbances in Tether’s activities could have broad consequences on the market.
New Lending Initiatives Could Revolutionize Small Commodity Traders Access to Finance
USDT’s ongoing development is not confined to blockchain applications alone. As we previously highlighted, Tether has started looking at other development paths, including maybe bringing dollar-based loans for smaller commodities dealers.
Because of their limited exposure to big financial networks, many smaller traders—especially in developing countries—face great difficulties finding conventional funding choices. Tether’s arrival into this market might give these merchants faster, more flexible financing choices, which would help to simplify world trade and financial activities.
Although USDT’s expansion presents a good future image for stablecoins, Tether’s financial openness is still under examination. Critics have long questioned whether Tether has enough reserves to support its steady coin printing. Still, current audits show a better picture.
As we previously reported on CNF, Tether has $118.4 billion in reserves, according to a Q2 2024 audit report, more than offset by $5.3 billion in liabilities. Currently ranking 18th worldwide among holders of U.S. Treasury bills, Tether has invested $97.6 billion on these bills.
Apart from preserving a solid reserve, Tether’s possible participation in dollar-based loans for small commodity dealers might greatly affect world trade and finance. Because they are not included in main banking networks, many small dealers find it difficult to obtain regular financing.
Tether could be very important in enabling these traders to get above their financial constraints by providing quicker and more flexible financing solutions.
