Tether, the cryptocurrency stablecoin, has achieved a significant milestone by reaching an all-time high market capitalization of $100 billion.
This represents a 9% growth since the beginning of the year, solidifying Tether’s lead over its closest competitor, USD Coin (USDC), by more than $71 billion.
The peak was recorded on March 4, based on data from CoinGecko, although fluctuations in market cap are common due to changes in price and circulating supply.
In comparison, other platforms like CoinMarketCap have not yet registered Tether reaching this landmark.
Tether’s remarkable market cap positions it alongside major global companies such as the British oil conglomerate BP and surpasses e-commerce giant Shopify in value.
Tether operates on 14 different blockchains and protocols and is considered the third-largest cryptocurrency by market cap, trailing only behind Ether.
It plays a vital role in the cryptocurrency market, offering traders a stable asset amidst the volatile crypto environment.
The cryptocurrency market as a whole has experienced a resurgence, with the total market cap exceeding $2 trillion.
Bitcoin, in particular, has seen a 50% increase in price, achieving two-year highs.
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Tether, the company behind the USDT token, supports each token with a 1:1 ratio of independently audited reserves, primarily consisting of U.S. Treasury Bills (T-Bills).
The company reported a record quarterly profit of $2.85 billion in the fourth quarter of 2023, with $1 billion attributed to its T-Bill investments, showcasing over $80 billion in T-Bill holdings.
Despite its success, Tether has faced scrutiny regarding the quality of its asset backing. Efforts have been made to diminish exposure to higher-risk assets.
The company had planned to cease lending funds from its reserves by the end of 2023, yet $4.8 billion in loans remained on its books at year-end.
These loans are reportedly fully collateralized, with a commitment to reduce them to zero by 2024.
The majority of USDT tokens circulate on the Tron blockchain, which a United Nations report criticized for facilitating cyber fraud and money laundering activities in Southeast Asia.
Tether has contested these claims, emphasizing its cooperation with law enforcement and the traceability of its tokens.
