USDT Soars To $115 Billion Market Cap As Tether Sets New Record
Tether’s USDT has crossed yet another significant milestone in market capital, surging past the $115 billion mark. This attainment is a proof of the fact that stablecoin gains massive traction in the market, especially under periods of high volatility where users rush for safer crypto assets.
USDT has become an indispensable part of the digital asset ecosystem, having a general use for trading and as an outlet for investors during times of market uncertainty.
Source: IntoTheBlock
Resilience In The Crypto Market
Cryptocurrencies have shown some excellent resilience in the market of late, with some of the biggest in the market being Bitcoin and Ethereum. Currently, Bitcoin accounts for about 54.4% of the market, while Ethereum holds around 17.8%.
The combined market for all these digital assets is estimated to be $2.11 trillion; USDT ranks third among digital assets. This kind of increase clarifies the growing relevance of Tether as well as the confidence traders and investors have in the stablecoin.
Paolo Ardoino, CEO of Tether, was proud to achieve this big milestone. He was quoted as saying that USDT moved ahead from where it started. Just to gauge how much this asset class has ballooned, it was able to generate a net profit of $5.2 billion over the first half, which it attained with significantly fewer manpower than what big exchanges like Coinbase and Binance have. All thanks to a well-thought-out strategic investment portfolio in addition to adapting to the fast-changing norms in digital finance.
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— Paolo Ardoino 🤖🍐 (@paoloardoino) August 8, 2024
Expansion And Compliance
Banking on the recent success, Tether has outlined the expansion of its workforce to 200 employees by mid-2025. The increase in staff is meant to provide better conformity with the provisions of the regulators and to enhance operational efficiency.
According to Ardoino, the increase in headcount number would be done with a lean structure, though some personnel would be introduced into the finance and compliance areas. It is, as well, creating some advanced tools for tracking illicit activities with USDT to prove it has transparency and follows regulations.
Tether has been criticized for the fact its stablecoin could be used for illicit activities. The company decided to go ahead voluntarily and froze 50 million USDT’s that were directly related to transactions that were flagged as suspicious.
In the bid for more transparency and safety, Tether has also established a partnership with a blockchain data protection firm, Chainalysis. The goal is the development of secondary market protocols that will make surveillance possible. This effort will further strengthen Tether’s war against all forms of fraud and fraudsters, which assures a safety platform.
1.3B $USDT has been transferred from #TetherTreasury to exchanges since the market crash on Aug 5! pic.twitter.com/BYtMqgVRyZ
— Lookonchain (@lookonchain) August 9, 2024
USDT: Innovation And Investments
Looking into the future, Tether is firmly set on market growth and innovation. This includes investments of over $2 billion in different startups over the last two years in areas such as artificial intelligence and telecommunications.
Meanwhile, under a larger crypto market boom, blockchain specialist Lookonchain noted that $1.3 billion worth of USDT was transferred to centralized exchanges including Kraken, OKX, and Coinbase.
Ardoino hinted that self-investment by Tether is likely to continue on this aggressive trend to drive on emerging technologies and new trends in the digital landscape. Such a proactive approach not only cements Tether’s position as a leader in the stablecoin market but also assures its position as a large player across the rest of the cryptocurrency ecosystem.
Featured image from Pexels, chart from TradingView
