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- 1 USDT market capitalization reached $80 Billion on April 05, 2023.
- 2 Tether is ranked third in terms of market capitalization and trading volume.
- 3 USD has an exposure of $3.3 billion with Silicon Valley Bank.
Tether Market Capitalization reached over $80 Billion for the first time in the last 11 months. On April 05, the market capitalization of USDT reached $ 80.140 billion following the rising trend. On April 03, the market cap was $82.404, and the highest market capitalization recorded was $82.518 Billion.
USDT is an asset-backed stablecoin issued by Tether, a Hong Kong-based company. The value of stablecoin always remains in the ratio of 1:1. According to White of Tether, for every stablecoin issued, a reserved asset is kept for every issued USDC.
According to CoinMarketCap, at press time, the trading volume of USDT surpassed the 24-hour trading volume of Bitcoin. In a 24-hour trading session trading volume of Bitcoin is over $12 billion, and USDT’s 24-hour trading volume is above $22 billion. The rising market capitalization is making a staircase pattern.
CoinMarket ranked USDT third and its competitor USDC Coin is ranked fifth.
At a point in time, market capitalization and market rank of USDT were below USD.
At press time USD coin has a market capitalization of $32 billion. USDC’s market capitalization is 60% less than USDT’s market capitalization.
After the Silicon Valley Bank collapse, USDT cleared that it has no exposure with Silvergate, Signature Bank and Silicon Valley Bank.
After the FTX collapse, CFTC said in a filing against FTX noted that digital assets such as Bitcoin (BTC), Tether (USDT) and Ethereum (ETH) are commodities. In the last few months stablecoins adoption trend drastically shifted from USDC and other stablecoins to USDT.
Earlier in March– Bybit, one of the leading crypto exchanges, launched its new Web3 staking pool in which the user need not buy ETH as a product and can access facilities of the staking pool by using USDT, BTC and USDC.
On March 11, Circle the issuer of USDC told about stablecoin exposure with Silicon Valley Bank and the bank held over $3.3 billion of reserve assets. According to the Twitter post, USDC has a total of $40 Billion of reserve assets.
A day after Signature Bank shut down, Jeremy Allaire the Chief Executive Officer of Circle wrote on Twitter noting that “ With the closure of Signature bank announced tonight, we will not be able to process minting and redemption through SigNet, we will be relying on settlements through BNY Mellon.”
The cryptocurrency sector was troubled the most in 2022 and massive unprecedented events have stirred the entire crypto market. FTX is not alone in the list who troubled the market; there are dozens of other crypto organisations that collapsed or filed for bankruptcy.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
