Tether (USDT) Market Capitalization Increases to $80 Billion ── Approaching Record High of $83 Billion | coindesk JAPAN | Coindesk Japan

The US dollar-backed stablecoin Tether (USDT) has survived the turmoil caused by the collapse of Terra in mid-2022 and is gaining popularity. The market capitalization continues to climb and is just below an all-time high.

According to Coingecko, USDT’s market capitalization has grown more than 20% since the beginning of the year to reach $80 billion, up 12% in the past four weeks alone. A record high of $83 billion was recorded in May 2022.

Markus Thielen, head of research and strategy at crypto service provider Matrixport, said USDT’s market cap was driven by “aggressive issuance” on the Tron Network. Tron is very popular in mainland China.

According to Matrixport, USDT issued on Tron currently accounts for more than half of the market cap.

While the market cap of USDT has increased, the market cap of the No. 2 dollar-pegged stablecoin, USD Coin (USDC), has fallen 27% since the beginning of the year to $32.5 billion. In March, investors began avoiding USDC after its issuer, Circle, disclosed that it had deposited $3.3 billion of USDC’s reserves with the failed Silicon Valley bank.

According to Matrixport, some USDC holders have diversified their assets into USDT and Bitcoin (BTC).

Matrixport Technologies

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Matrixport Technologies
｜Original: Stablecoin Tether’s Market Capitalization Nears Record High of $83B