Tether 's USDT stablecoin now holds more than 75% of the stablecoin market, marking a significant increase from 55% in 2022, according to data released on September 16.
This development reflects the growing demand for USDT as a reliable bridge between traditional currencies and digital assets.
With a circulating supply of $118 billion, USDT has seen steady adoption across cryptocurrency markets, bolstered by the company’s strong financial performance. Over the past month, Tether has generated $400 million in revenue, cementing its position as the leading stablecoin issuer.
Tether ’s market share growth highlights its importance in the digital asset space, where investors often rely on USDT to hedge against market volatility. Stablecoins have become an important tool for traders looking to move in and out of cryptocurrency positions, especially during uncertain market conditions.
Financial performance
Tether ’s revenue generation goes far beyond stablecoin issuance. In the first quarter of 2024, the company reported $5.2 billion in profits, driven by investments in assets like Bitcoin and gold, which contributed $3.52 billion.
Operating profit contributed another $1 billion. This diversified financial strategy has allowed Tether to consolidate its market leadership while expanding its reach.
The company is also focused on regulatory compliance, with plans to double its workforce by mid-2025. A significant portion of this growth involves hiring additional compliance professionals.
Records on the exchanges
In another sign of Tether's growing dominance, USDT balances on cryptocurrency exchanges hit a record $20.3 billion in August.
This increase suggests that investors are increasingly holding USDT to manage market risks or prepare for future trading opportunities.
During market downturns, traders often convert volatile assets into stablecoins like USDT to protect against potential losses. Meanwhile, accumulating USDT during more bullish market periods shows readiness for investment opportunities when conditions improve.
Tether's continued expansion, both in market share and compliance efforts, signals its growing influence in the burgeoning digital asset landscape.
