The total market capitalization of the leading stablecoin, Tether’s USDT, has hit an all-time high of $83.2 billion, beating its all-time high established a year ago and offsetting the $18 billion market cap deflation triggered by UST’s fall from grace.
The achievement is especially noteworthy in light of the ongoing 14 month contraction in the stablecoin market, which according to CCData’s latest Stablecoins & CBDCs report saw a decline in total market capitalization 0f 0.45% to $130 billion as of May 23, to its lowest market cap since September 2021.
Tether’s USDT has recently been growing as it benefits from woes affecting its rivals. Circle’s USDC, the second-largest stablecoin, was hit by the implosion of its banking partner Silicon Valley Bank in March.
On the other hand Binance USD (BUSD), a one-time $20 billion entity, effectively received an expiration date when New York state regulators compelled the issuer, Paxos, to cease minting new tokens in February.
Tether has reported a $1.48 billion net profit in the first quarter of the year, with approximately 85% of its investments being in cash, cash equivalents, and other short-term deposits. The company earns income from its large portfolio of U.S. Treasury bills, gold, and other investments and has recently committed to buying Bitcoin using 15% of its net realized profits.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jun/02/
