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In 2023, the most important stablecoin in the crypto market, Tether (USDT), has seen a growth in its total market cap of almost 30 billion dollars. However, in 2024, it starts with a market capitalization of 95 billion dollars for USDT.
Summary
Tether (USDT): the stablecoin increases its market cap in 2023 by almost 30 billion dollars
Just look at the chart provided by CoinMarketCap, to see that Tether’s (USDT) total market cap has grown by almost 30 billion dollars in its 2023.
And indeed, at the beginning of last year, the market capitalization of the most important stablecoin was at $66 billion. By the end of 2023, however, the total market cap had already surpassed $91 billion.
The bullish trend of Tether’s market cap occurred throughout the year, with the months from May to October where it seemed like there was a flattening of the curve. In reality, from mid-October to the end of December, the curve started to soar again, growing by 8 billion dollars.
In the first quarter of 2023, the increase in Tether’s market cap was more intense, amounting to 20 billion dollars.
This has also happened thanks to the “misfortunes” experienced by other important stablecoins such as USD Coin (USDC) and Binance Coin (BUSD) during the year. In this regard, USDT has remained the rescue stablecoin.
Tether (USDT): the 2023 market cap report of the stablecoin and the new beginning in 2024 at 95 billion dollars
While 2023 is history, 2024 is instead the new beginning. In fact, in these first two weeks of 2024, Tether (USDT) has managed to set new records, bringing its market cap to 95 billion dollars.
In the ranking of Top Stablecoins by market capitalization, Tether is obviously in first position, followed by USDC with 25 billion dollars and DAI with 5 billion dollars of market cap.
Only with the second stablecoin, the market capitalization gap of 70 billion dollars is remarkable. With the third stablecoin, instead, we are talking about 90 billion dollars.
Tether can be said to be going on its own. Going into the generic crypto world, it is not surprising that the main stablecoin is only behind Bitcoin (BTC) with 834.5 billion dollars and Ethereum (ETH) with 305 billion dollars of market cap.
Who knows that in a short time, USDT may reach a market capitalization of 12 figures, just like the two cryptocurrencies on the podium.
The minting of 1 billion USDT
Ten days ago, the company Tether finalized the minting of 1 billion USDT, adding to its Treasury an equivalent of 1,000,497,499 US dollars.
This is yet another increase in the circulating supply of Tether, which in recent years has been adding more and more fuel to the crypto markets.
Generally, these frequent minting activities precede periods in which BTC or other cryptocurrencies could increase in price. This is because the main characteristic of stablecoins is to be used as a counterpart for trading.
Meanwhile, several addresses that have deposited funds with Tether’s Treasury are sending their USDT to various centralized exchanges, presumably with the idea of exchanging them for BTC or altcoins.