Tether’s Market Cap Inches Towards All-Time High as Competitors Struggle With Redemptions
Despite several U.S. dollar-pegged digital tokens experiencing notable redemptions in recent months, the largest stablecoin by market valuation, tether, is on the verge of achieving its highest-ever market capitalization. With a current value of $82.84 billion, tether is a mere $433 million shy of reaching its all-time high (ATH) set on May 8, 2022.
Stablecoin Tether on Brink of Record Market Capitalization
Approximately 370 days ago, specifically on May 8, 2022, tether’s (USDT) market capitalization soared to an all-time high (ATH) of $83.279 billion. It was during this period that Terra’s once-stable coin, terrausd (UST), became unpegged from its $1 parity.
Following that event, tether’s market valuation experienced a decline, hitting a low of $65.36 billion on November 24, 2022, resulting in a loss of 21.51% of its total market capitalization.
Since then, tether’s market capitalization has experienced growth and is now inching closer to the ATH it achieved on May 8. As of the current date, May 13, 2023, tether’s market valuation stands at $82.84 billion.
Recent data reveals a notable 2.7% surge in the number of USDT in circulation over the past 30 days. Consequently, with the market valuation at $82.84 billion, the estimated count of circulating tethers on May 13 is approximately 82,797,235,449.
USDT’s competitors have experienced contrasting fortunes in recent months. Take usd coin (USDC), for instance, which has witnessed a decline of 6.5% in its supply over the past month. BUSD has encountered a loss of 17.4%, while Makerdao’s DAI has fallen by 6.9%.
On the other hand, while tether witnessed a modest 2.7% increase, pax dollar (USDP) saw a notable rise of approximately 13.8% within the same timeframe. Leading the pack in terms of supply growth over the past 30 days was GUSD, with the number of tokens soaring by 42.8%.
Although GUSD and USDP have experienced notable growth over the past 30 days, they pale in comparison to the colossal stablecoin giant, tether. Moreover, tether’s market capitalization of $82.84 billion constitutes a significant 7.09% share of the crypto economy’s total value of $1.16 trillion in USD.
Furthermore, as of May 13, the entire crypto market boasts a global trade volume of $36.79 billion, with tether commanding a substantial $20.41 billion of that volume. Since January 2, 2021, tether’s market valuation has skyrocketed by 290.754% over the last 861 days.
Will tether’s ascent to its all-time high mark a turning point in the stablecoin landscape? We want to hear your thoughts and insights. Share your perspective on the future of stablecoins and their impact on the crypto market in the comments section below.
