Tether, the stablecoin issuer, broke its previous all-time market capitalization record on June 1, 2023, with a market cap of $83.23 billion. This record surpassed the previous high of $83.2 billion that was set in May 2022 before Terra’s stablecoin, UST, lost its peg on May 9, 2023. Following the collapse of FTX, USDT’s market valuation had dropped to $65.43 billion by the end of November 2022.
Surge in USDT Market Value
Since then, USDT’s market cap has grown as the supply of USDT tokens in circulation has expanded. The rise in demand for USDT tokens has pushed up its market valuation by approximately $17.8 billion or 27.15% in the past six months. USDC, BUSD, DAI, and other stablecoins, on the other hand, have experienced significant declines in their supplies. The total market capitalization of the entire stablecoin ecosystem is currently at its lowest level since September 2021.
Paolo Ardoino, Tether’s CTO, commented that today’s numbers demonstrate that people want access to financial freedom and will utilize it when given the opportunity. Tether tokens offer a safe haven for the unbanked, providing them with a way to keep their buying power, especially when their national currency is being devalued.
Tether Expands Operations
Tether launched a sustainable bitcoin mining operation and declared in mid-May that 15% of the company’s profits would be invested in bitcoin. Tether later revealed that it had invested in Georgia-based payment processing company Citypay.io. Tether, along with YellowCard, an African fintech firm, concluded Phase 1 of their Financial Literacy Tours in African countries such as Nigeria, Kenya, and Ghana, where over 10,000 young people were reached.