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USDT continues to conquer the stablecoin market in 2023, and none of its rivals are even close to threatening its dominance. In May 2023, USDT was the only leading stablecoin that saw its market cap increase, hitting a new peak of $83.25 billion on June 1st.
USDT Added $1.4B to its Market Cap in May 2023
Tether’s USDT continues to grow its dominance in the stablecoin market, with its market cap hitting a new all-time high of $83.25 billion, topping the previous record of $83.2 billion. According to CoinGecko data, USDT’s supply rose around 2% over the past month, while other major stablecoins such as USDC, BUSD, and DAI, among others, saw their market caps decline during the same period.
To be more specific, in the period from May 1 to June 1, Tether’s market cap increased from $81.81 billion to $83.25 billion. This marks a 1-month increase of $1.44 billion, or nearly 2% in percentage terms.
For comparison, USDC, the second-biggest stablecoin in the world, saw its market cap shrink from $30.41 billion to $28.8 billion over the same period, representing a decrease of around 5.2%. Similarly, BUSD’s market cap fell by 16.3% from $6.1 billion at the start of May to $5.1 billion on June 1.
Paolo Ardoino, Chief Technology Officer of Tether Limited, believes that the surge in demand for USDT comes from investors’ pursuit of financial independence and that the stablecoin represents a safe-haven asset for the unbanked population. Earlier this week, Tether made a major expansionary move, announcing plans to launch sustainable mining operations in Uruguay.
USDT and USDC’s Recovery From 2022 Lows
USDT hitting hew heights marks an impressive recovery for the world’s largest stablecoin, which experienced significant pressure last year during the 2022 crypto market sell-off. During the downturn, market leaders USDT and USDC experienced notable market cap declines of more than $20 billion and $10 billion, respectively.
In terms of percentage, USDT’s drop last year was less dramatic compared to USDC, thanks to its greater resilience and larger user base. This suggests more demand for USDT during the crypto winter as investors sought to preserve their capital.
USDC, on the other hand, has not been able to recover as quickly from the turmoil. Its woes continued into 2023, with the stablecoin even losing its peg in March amid the severe banking crisis in the US triggered by the collapse of the Silicon Valley Bank (SVB).
Do you think any of the other leading stablecoins could pose a threat to USDT’s dominance in the future? Let us know in the comments below.