Tether, which is more popularly known as USDT, is moving slowly and steadily towards achieving a record-breaking high of $84 billion in terms of its market capitalization. Through this, it has gone way ahead of its closest competition, USDC. What actually goes to its credit is the fact that in the previous year, it had witnessed an enormous windfall.
In the case of Binance’s stablecoin BUSD, facing action from the SEC culminated in the lowering of its value. With USDC’s reserves getting blocked in Silicon Valley, it faced a similar situation. This helped to propel USDT beyond its reach. Tether attributes its success story to wider acceptance. For Tether to have climbed up despite the fiasco with Terra ecosystem losing $60 billion and the falling out of FTX, it is indeed creditworthy. The upside is that crypto has once again risen to become a trillion US dollar market.
At the present moment in time, the USDT market share has expanded by 25% from the beginning of the year 2023. The reason for this is its dependability factor. Investors are heading more towards Tether as compared to any other stablecoin. USDC and BUSD are witnessing a downfall to the tune of 40%.
In the case of BUSD, the Securities and Exchange Commission went ahead and filed a petition against Paxos, asking it to drop minting BUSD. Where the USDT supplier was concerned, it kept itself far away from all controversial issues and lessened the overall value of its total amount of reserves in the form of deposits in banks all over the US Tether landed up witnessing a profit amount to the tune of $1.5 billion in the first quarter of 2023.