{"id":53170,"date":"2023-08-26T01:52:42","date_gmt":"2023-08-26T05:52:42","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/usdt-maintains-dominance-with-86-1-billion-market-cap-over-100-reserve-backed\/"},"modified":"2023-08-26T01:52:43","modified_gmt":"2023-08-26T05:52:43","slug":"usdt-maintains-dominance-with-86-1-billion-market-cap-over-100-reserve-backed","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=53170","title":{"rendered":"USDT Maintains Dominance With $86.1 Billion Market Cap, Over 100% Reserve-Backed"},"content":{"rendered":"
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Stablecoin issuer Tether posts its total market capitalization at $86.1 billion as it maintains its leading market share despite growing competition and uncertain regulatory conditions.<\/p>\n

In the company\u2019s reserve report<\/u>, while total assets stood at $86.1 billion, its liabilities amounted to $82.8 billion. Liabilities include user assets held in USDT across multiple networks.<\/p>\n

This report shows the company\u2019s stability as its reserves are over 100%. In total, the company posted a liquidity cushion of $3.2 billion signifying a surplus to the delight of the community.<\/p>\n

The issuer\u2019s $3.29 billion surplus is shareholder capital which is held on multiple networks, over 15 as explained in the statement.\u00a0<\/p>\n

Across the networks, Solana has a value pre-authorization of $1.57 billion with Ethereum and Tron coming next with $617 million and $353 million.<\/p>\n

In recent years, Tether has come under regulatory scrutiny for allegedly sharing untrue<\/u> financial statements resulting in a $41 million fine by the Commodity Futures Trading Commission (CFTC) in Oct 2021.<\/p>\n

Those events led to users’ fear which heightened with the collapse<\/u> of the Terra Network following the failure of its algorithm-backed stablecoin in April 2022.\u00a0<\/p>\n

On the bright side, Tether’s previous transparency reports have not been questioned by regulators leading to its growing popularity among investors even in the wake of new competition.<\/p>\n

Per the report, USDT is the only stablecoin under Tether that boasts of excess reserves above its liabilities. The other assets, CNHT, XAUT, MNXT, and EURT cannot keep up the 1:1 peg with its balance in the event of a crisis.<\/p>\n

USDT leads the pack<\/h2>\n

USDT has led the stablecoin market for a long time keeping its competition in the shadows amid regulatory concerns.<\/p>\n

In the company\u2019s Q2 report<\/u>, it reported a profit of $850, a 30% quarter-on-quarter increase bringing its reserves over $3.2 billion.<\/p>\n

In June, the company hit an all-time high as its market cap <\/u>soared above $83 billion with competitors struggling to stay above the water. USD Circle stands in second place in terms of market cap with $28.8 billion, a staggering $50 billion behind USDT.\u00a0<\/p>\n

The dominance of USDT can be noted in the recent slump of USDC which recorded a market cap of 55.8 billion in June 2022. The stablecoin has faced recent headwinds including losing its peg earlier in the year after the Silvergate Bank saga.<\/p>\n

Binance USD, (BUSD) currently has a market cap of $5 billion with its CEO Changpeng Zhao highlighting the regulatory cap of BUSD by the New York Department of Financial Services at $23 billion as a key reason for the surge of USDT.\u00a0<\/p>\n

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