Tether’s USDT stablecoin market share rises to over 75%

• Tether (USDT) market share has risen to 75%, up from 55% in two years.
• Tether generated $400 million in revenue in the last 30 days.
• USDT on crypto exchanges hit a record $20.3 billion in August 2024.

Tether (USDT), the world’s largest stablecoin, now commands over 75% of the stablecoin market, a rise of 20% in just two years. This growth reflects increasing adoption of USDT as a primary bridge between fiat currency and cryptocurrency.

With a USDT supply of $118 billion, Tether has seen rapid expansion, supported by strong financial performance and strategic advancements.

Tether’s surging market share

According to data from Token Terminal, Tether’s market share in the stablecoin sector has surged from 55% to 75% over the past two years.

ICYMI: @Tether_to has grown its market share from 55% to 75% over the past 2 years.

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

— Token Terminal | @ TOKEN2049 🇸🇬📊 (@tokenterminal) September 16, 2024

With a USDT supply of $118 billion, this growth solidifies Tether’s dominance in the market, as its stablecoin has become a crucial tool for investors transitioning between fiat currencies and cryptocurrencies.

The firm’s significant revenue generation supports this rise. In the 30 days leading up to September 16, 2024, Tether generated an impressive $400 million in revenue. This follows a record-breaking first quarter of 2024, where the company netted over $5.2 billion in profits.

Notably, $3.52 billion of this profit came from Tether’s investments in Bitcoin and gold, while $1 billion was derived from operating profits.

These figures emphasize Tether’s ability to generate value beyond its core stablecoin business, particularly through strategic asset allocations.

As Tether continues to expand, the company is focusing on building a stronger compliance team. It has set a target to double its workforce by mid-2025, with a particular emphasis on hiring compliance specialists.

This move coincides with the recent appointment of Jesse Spiro, PayPal’s former head of regulatory relations, to strengthen its government affairs team, signalling Tether’s commitment to long-term stability and regulatory compliance.

USDT on exchanges hits record high

Another significant indicator of Tether’s growth is the USDT balance on crypto exchanges, which reached a record $20.3 billion in August 2024. This marks a notable milestone, as traders stockpile USDT for potential market opportunities.

In bearish conditions, investors often convert their volatile crypto assets into stablecoins like USDT to shield their portfolios from uncertainty.

Conversely, in bullish phases, the accumulation of stablecoins suggests a readiness to invest in cryptocurrencies when prices dip.