Tether USDT Surpasses $120B in Market Capitalization

USDT, the flagship stablecoin issued by Tether, has reached a significant milestone, surpassing $120 billion in market capitalization. This latest record cements its leading role in the stablecoin market and reflects its status as the preferred choice for most traders globally.

Factors Behind USDT’s Growth

Several key factors have contributed to USDT’s growth. The stablecoin’s ability to maintain its peg to the United States dollar has helped it become trusted within the crypto market. Additionally, its growing adoption across different blockchain networks and geographical locations has played a significant role in the digital asset’s growth.

Presently, Tether’s USDT lives on about 17 blockchains, including Ethereum, Tron, Solana, Avalanche, and TON. In August, the stablecoin was launched on the layer-1 Aptos blockchain, allowing Tether to tap into a network known for its low gas fees and high transaction speeds. This integration reduced transaction costs for users and is expected to drive more engagements within the Aptos network, enhancing its ecosystem.

In late August, Tether’s CEO, Paolo Ardoino, revealed that the project is discarding plans to launch a native blockchain for the stablecoin issuer. He explained that Tether will focus on expanding its business to more blockchain networks.

Will Tether Continue the Trend?

While Tether is expanding its business to multiple blockchains, it has failed to secure operational licenses in many countries. One of the last times the stablecoin issuer officially entered a country was in 2022 when it launched over 24,000 ATMs in Brazil.

Recent reports show that USDT’s failure to secure a regulatory license from certain governments will potentially hinder its continued growth.

Earlier this month, crypto exchange Coinbase announced that it would delist stablecoins that do not comply with the European Union’s Markets in Crypto Assets (MICA) regulations by the end of the year. The announcement entailed that USDT, among other non-compliant stablecoins, will be delisted from 27 countries within the bloc.