Tether has increased its market share by 20 points over the past two years, bolstered by a $118 billion USDT supply and $400 million in monthly revenue.
Tether accounts for 75% of the stablecoin market share, USDT reaches record balance on exchanges. Photo: Blockworks
Tether monopolizes ¾ of the stablecoin pie
According to data released on September 16 by Token Terminal , Tether 's USDT now controls more than 75% of the stablecoin market , up sharply from 55% in 2022.
ICYMI: @Tether_to has grown its market share from 55% to 75% over the past 2 years.
— Token Terminal | @TOKEN2049 🇸🇬📊 (@tokenterminal) September 16, 2024
1) Tether's USDT supply is $118 billion
2) Tether's market share is 75%
3) Tether has made (an estimated) $400 million in revenue in the past 30 days pic.twitter.com/IFxXGY0UYg
This growth reflects the growing demand for USDT as a reliable intermediary between traditional currencies and digital assets.
With a circulating supply of $118 billion , USDT has gained widespread recognition in the crypto market, thanks to the strong financial results of its parent company Tether. In the past month alone, Tether has generated $400 million in revenue , cementing its position as the leading stablecoin issuer.
Tether 's bloated market share also underscores USDT 's dominant Vai in the digital asset space, where investors often rely on it to hedge against market volatility.
Positive financial situation
Tether generates revenue not only from issuing stablecoins, but also from investments in assets such as Bitcoin and gold. In Q1/2024, the company made a profit of $4.5 billion , with investments in Bitcoin and gold alone contributing $3.52 billion, while operating profit was only $1 billion.
Tether 's financial reserves as of Q1/2024. Source: Tether
The company is also focusing on regulatory compliance, with plans to double its headcount by mid-2025 , specifically hiring more compliance experts. Last week, Tether appointed former PayPal Director of Regulatory Relations Jesse Spiro as its new head of government affairs.
Very excited to work with Jesse to build awareness and transparency at all levels 💪 https://t.co/7HXXHMiusT
— Paolo Ardoino 🤖🍐 (@paoloardoino) September 13, 2024
USDT Record on Exchanges
Another sign of Tether ’s dominance is that USDT balances on exchanges hit a record $20.339 billion on August 13. Historical data shows that USDT balances on CEXs surge during both bull and bear markets.
It can be seen that investors often tend to hold USDT to manage risks or wait for trading opportunities. During recessions, they often convert volatile assets to stablecoins like USDT to avoid losses. Conversely, when the market shows signs of recovery, they will accumulate USDT, always ready to invest.
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