Tether’s US dollar stablecoin has seen significant adoption over the past two years and now controls two-thirds of the overall stablecoin market.
According to Token Terminal, Tether USDT (USDT) has grown its market share by more than 20% over the past two years, capturing more than 75% of the overall stablecoin market.
The on-chain data platform said in a September 16 post:
“Tether has grown its market share from 55% to 75% over the past two years. Tether’s USDT supply is $118 billion. Tether’s market share is 75%.”
Tether Market Share. Source: Token Terminal
Stablecoins are a major entry point from fiat currencies to the world of cryptocurrencies. The growth of stablecoin market capitalization suggests that investors are increasingly willing to buy cryptocurrencies.
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Tether has generated $400 million in revenue over the past 30 days.
According to Token Terminal, Tether, the world’s largest stablecoin issuer, generated about $400 million in revenue in the 30 days ending September 16.
Tether earnings over the last 30 days. Source: Token Terminal
Stablecoin issuers are seeing their profits grow following a record first quarter in which Tether reported more than $4.5 billion in profit in Q1 2024.
It is noteworthy that most of this profit, $3.52 billion, came from proceeds from Bitcoin and gold, with only $1 billion coming from operating expenses.
Tether Financial Reserves, Q1 2024. Source: Tether
Just days after Tether appointed former PayPal regulatory affairs chief Jesse Spiro as its new head of government affairs on September 13, new data has emerged showing that the stablecoin issuer has seen significant growth during this period.
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Tether USDT Reaches $20.3 Billion Record on Exchanges
On August 13, Tether’s USDT balances on cryptocurrency exchanges hit an all-time high of $20.339 billion, signaling that investors are ready to invest in these stablecoins as a part of their crypto assets.
Historically, Tether’s exchange balances have increased in both bear and bull markets.
In a bear market, an increase in USDT holdings is often a sign that traders are seeking safety in market uncertainty by converting volatile cryptocurrencies into stablecoins. Conversely, in a bull market, an increase in USDT accumulation may indicate that traders are stockpiling stablecoins to use to buy cryptocurrencies when prices drop.
The world’s largest stablecoin issuer has seen significant growth over the past two years. Tether plans to double its headcount to 200 by mid-2025, with a particular focus on expanding its compliance team.
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