Tether Surpasses $100 Billion Market Cap, Leading the Stablecoin Race by a Wide Margin

Tether's record-breaking market cap cements its position as a stablecoin giant, outpacing competitors and rivaling major corporations in value.

Leading cryptocurrency stablecoin Tether has achieved an extraordinary milestone, reaching an all-time high market capitalization of $100 billion. This marks a remarkable 9% growth since the year's commencement, further establishing Tether's dominance over USD Coin (USDC) by a staggering $71 billion margin.

March 4 witnessed the pinnacle of Tether's ascent, as reported by CoinGecko, although fluctuations in market cap are customary due to price fluctuations and circulating supply variations.

While platforms like CoinMarketCap have yet to officially recognize Tether's landmark achievement, its unprecedented market cap places it in league with global giants such as BP and surpasses e-commerce titan Shopify in valuation.

Operating across 14 diverse blockchains and protocols, Tether stands as the third-largest cryptocurrency by market cap, trailing only behind Ether. Its stability amidst the volatile cryptocurrency landscape renders it indispensable for traders seeking a reliable asset.

Behind the USDT token lies Tether, a company that backs each token with a 1:1 ratio of independently audited reserves, primarily comprising U.S. Treasury Bills (T-Bills). Notably, 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 phenomenal success, Tether has faced scrutiny regarding the quality of its asset backing. Efforts have been initiated to mitigate exposure to higher-risk assets, with plans to cease lending funds from reserves by the end of 2023. However, $4.8 billion in loans remained on its books by year-end, pledged to be fully collateralized with a commitment to reduce them to zero by 2024.

The majority of USDT tokens circulate on the Tron blockchain, a platform that a United Nations report has criticized for facilitating cyber fraud and money laundering activities in Southeast Asia. Tether vehemently contests these allegations, highlighting its cooperation with law enforcement agencies and the traceability of its tokens.