Tether’s USDT hits 75% market share amid record exchange balances

Tether’s USDT stablecoin now controls more than 75% of the stablecoin market, marking a substantial increase from 55% in 2022, according to data released on Sept. 16.

The growth reflects the increasing demand for USDT as a trusted intermediary between fiat currencies and digital assets.

With a circulating supply of $118 billion, USDT has seen steady adoption across crypto markets, bolstered by the firm’s strong financial performance. Over the past month, Tether generated $400 million in revenue, reinforcing its position as the leading stablecoin issuer.

Tether’s growing market share highlights its importance in the digital asset space, where investors often rely on USDT to hedge against market volatility. The stablecoin has become a key tool for traders looking to move in and out of crypto positions, especially during uncertain market conditions.

Financial performance

Tether’s revenue generation goes beyond its stablecoin issuance. In the first quarter of 2024, the company reported $5.2 billion in profits, driven by investments in assets like Bitcoin and gold, which contributed $3.52 billion.

Operating profits accounted for an additional $1 billion. This diversified financial strategy has allowed Tether to strengthen its market leadership while expanding its reach.

The company is also focusing on regulatory compliance, with plans to double its workforce by mid-2025. A significant part of this growth involves hiring more compliance experts.

Record amount on exchanges

In another sign of Tether’s rising dominance, the USDT balance on crypto exchanges hit a record $20.3 billion in August.

The surge suggests that investors are increasingly holding USDT to manage market risk or prepare for future trading opportunities.

During market downturns, traders often convert volatile assets into stablecoins like USDT to protect against potential losses. Meanwhile, the accumulation of USDT during more optimistic market phases indicates readiness for investment opportunities when conditions improve.

Tether’s continued expansion, both in market share and compliance efforts, signals its growing influence in the evolving digital asset landscape.

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