Tether (USDT) has hit an ATH in market cap, equaling its previous peak little more than a year ago. This showed the demand for Tether’s stablecoin continues to grow despite the stablecoin market sinks. Tether CTO Paolo Ardoino believes that the demand for Tether stems from people’s desire for financial independence and the fact that stablecoins is a safe haven for those who don’t have a bank account.
Meanwhile, Tether is trying to set USDT as a trusted category in the crypto space. USDT has been gaining market share since the beginning of the year. Tether revealed a net profit of $1.48 billion in the first quarter, helping to increase Tether’s reserves.
According to data from CoinGecko, Tether’s market cap has increased by around 2% in the past 30 days. However, other major stablecoins, including USD Coin, Binance USD, DAI and TrueUSD, suffered losses during the same period. USDC’s market cap was down 5% last month, while BUSD was down nearly 16%.
The total market cap of stablecoins has dropped significantly over the past 14 months, by more than $50 billion. Market cap is just over $130 billion, down from over $186 billion in May 2022. Meanwhile, Tether currently holds about 63.9% market share.
Binance CEO Changpeng Zhao highlighted how Tether has benefited from BUSD decline. BUSD was capped (no new minting) by NYDFS at $23 billion. Binance basically USD cannot mint new tokens beyond this limit. In contrast, USDT has seen significant growth during this period.
The stablecoin market, in general, is still expanding. Hong Kong-based First Digital Group has released a new stablecoin called FDUSD, which uses Binance Smart Chain and is pegged to the US dollar (USD). Recently, Stable, a popular stablecoin service provider, announced plans to introduce Stable USD, a USD-backed stablecoin, as a natively-issued BRC-20 token.