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On June 1, 2023, the stablecoin issuer Tether exceeded the dollar-linked token USDT’s previous all-time market capitalization record of $83.2 billion, which was set in May 2022. In the last 186 days, USDT’s market value has surged by 27.15% from the low of $65.43 billion reached at the end of November 2022.
Tether Market Cap Skyrockets to $83.23 Billion, Breaking Previous May 2022 Record
With a market cap of $83.23 billion, tether (USDT) has now surpassed the stablecoin’s prior highest market capitalization. The previous peak in market cap happened just before Terra’s formerly stable coin UST lost its peg on May 9, 2023. On that day, USDT’s market cap stood at $83.2 billion, but by June 1, 2022, it had decreased to $72 billion. Following FTX’s collapse, USDT’s market valuation had dipped to $65.43 billion by the close of November 2022.
Since then, USDT’s market cap has grown in tandem with the number of tether tokens circulating. Over the past six months, the supply of USDT expanded, pushing its market valuation up by 27.15% or approximately $17.8 billion. Concurrently, top stablecoins like USDC, BUSD, DAI, and others experienced significant declines in their supplies. The entire stablecoin economy’s total market capitalization is currently at its lowest level since September 2021.
“Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it,” Paolo Ardoino, the CTO of Tether told Bitcoin.com News in an emailed statement. “Tether tokens offer a safe harbor for the unbanked and allow people in emerging markets to keep their buying power, even when their national currency is being devalued.”
The latest news comes after Tether launched a sustainable bitcoin mining operation after the company declared in mid-May that 15% of the company’s profits would be invested in bitcoin (BTC). On May 31, Tether revealed its investment in Georgia-based payment processing company Citypay.io. Moreover, Tether and African fintech firm Yellow Card have recently concluded Phase 1 of their Financial Literacy Tours. According to the announcement, “over 10,000 young people were reached” in African countries such as Nigeria, Kenya, and Ghana.
What are your thoughts on Tether’s market cap growth over the past six months? Share your thoughts and opinions about this subject in the comments section below.