Tether’s market cap surges to new all-time high, reaching record levels
Tether (USDT), the stablecoin pegged to the U.S. dollar, has reached an all-time high (ATH) market capitalization exceeding $83 billion, demonstrating its continued market dominance.
This new ATH market cap for USDT comes at a time when other stablecoin issuers are facing significant challenges and regulatory obstacles, which have placed strains on their operations and viability.
Surpassing the previous market cap high
In a tweet shared on June 1, Tether, the company operating the platform tether.to surpassed its previous market cap high of 83.2 Billion set in May 2022.
Since its establishment in October 2014, Tether’s stablecoin has emerged as a major participant in the cryptocurrency market, outpacing all competing offerings combined in terms of trading volume.
In response to this announcement, Binance CEO, CZ, responded to Tether’s Tweet to highlight Binance USD (BUSD), a stablecoin issued by Paxos and endorsed by Binance.
In his tweet, CZ emphasized that BUSD is a fully regulated stablecoin, subject to a cap of $23 billion imposed by the New York Department of Financial Services (NYDFS). Currently, BUSD’s market capitalization stands at $5 billion. Additionally, CZ pointed out the remarkable growth of Tether (USDT) since the inception of BUSD.
A staggering comparison
For context, in a development earlier this year, the New York Department of Financial Services (NYDFS) ordered Paxos to halt any further issuance of Binance USD (BUSD) following their receipt of a Walls notice by the Securities and Exchange Commission (SEC) for violating investor protection regulation .
This regulatory intervention came as a significant setback for BUSD at a time when its competitors, including the Circle-issued USD Coin (USDC), were striving to maintain their market dominance amidst the growing market cap of Tether (USDT).
USDC, currently the second-largest stablecoin in the market, sits at a market capitalization of $28.8 billion. However, when compared to the staggering market cap of USDT, there exists a considerable difference of over $50 billion.
Taken together, the regulatory intervention and the dominance of Tether in the stablecoin market reflect the growing importance of compliance and regulatory oversight in the industry. Stablecoin issuers must prioritize transparency, adherence to securities laws, and investor protection to build trust and maintain their market position.