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Thursday, April 18, 2024

Tether Eating All Other Stablecoins as Total Assets Approaches $100B 

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Tether’s total assets are not far away from $100 billion following a monumental rise over the past six years.

The current figure for the firm’s total assets is $95.2 billion, according to its transparency report. Of that amount, $92 billion is in the dollar-pegged stablecoin, USDT.

Tether Keeps Growing

On Jan. 3, Tether and VanEck strategy advisor Gabor Gurbacs reaffirmed his support for the firm, adding, “Like the Bitcoin ETF, many thought I was crazy.”

“USDT market cap was under $100 million in the spring of 2017 when I flagged to Wall Street that Tether has the potential to reach $100 Billion.”

Since the beginning of 2018, just six years ago, Tether’s market capitalization has grown a whopping 6,560%.

The investment expert offered some lessons he has learned from his continued support of Tether, which appears to be morphing into a CBDC.

“Investors generally underestimate exponential innovations,” he said before adding that small, capable teams that are stubborn can bring to life exponential innovations.

“Listen to the guy with the ambitious project/prediction that sounds crazy at the time.”

On Jan. 3, Tether CTO Paolo Ardoino simply stated that the firm had a good fourth quarter.

Tether has been profiting from high yields on US Treasury bills and using a portion of their profits to buy Bitcoin.

According to its reserves report, 85.7% of Tether reserves are “Cash and Cash Equivalents and Other Short-Term Deposits.”

Of this amount, 76.4% are US Treasury bills, 11% are overnight reverse repurchase agreements, and 11% are money market funds.

Stablecoin Ecosystem Outlook

Stablecoins currently represent 7.2% of the total crypto market capitalization with $132 billion. This percentage has fallen from the 16-17% of the market that stablecoins represented in 2022.

Tether commands the lion’s share of this total, with a market dominance of almost 70%. Over the past 12 months, its supply has grown by almost 40% while its major rivals have declined.

Circle’s USDC supply has shrunk by 44% over the past year to its lowest level since June 2021. There are just $24.8 billion in USDC circulating, giving it a market share of almost 19%.

MakerDAO’s DAI is the third largest stablecoin with $5.3 billion in circulation, and TrueUSD (TUSD) is fourth with $2.3 billion.

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