With a breathtaking ascent over the past six years, Tether total assets are inching closer to the staggering $100 billion mark. As per the firm’s latest transparency report, Tether’s total assets stand at a robust $95.2 billion, with $92 billion tied up in the USDT, a stablecoin pegged to the dollar.
The Unstoppable Rise of Tether
On January 3, Tether received renewed endorsement from Gabor Gurbacs, a strategy advisor at VanEck, who has been a long-time supporter of the firm. He likened his backing of Tether to his support for the Bitcoin ETF, both of which were initially met with skepticism. Gurbacs had foreseen Tether’s potential to reach $100 billion back in spring 2017 when its market cap was less than $100 million.
Since 2018, Tether’s market cap has skyrocketed by a staggering 6,560%. Gurbacs attributes this exponential growth to underestimation of innovative leaps and the tenacity of small, competent teams. He advises investors to pay attention to ambitious, seemingly outlandish projects and predictions.
Tether’s Profitable Fourth Quarter
Paolo Ardoino, Tether’s CTO, recently highlighted the firm’s strong performance in the last quarter. High yields on US Treasury bills have been a significant profit source for Tether, with a portion of these profits channeled into Bitcoin purchases.
According to Tether’s reserves report, 85.7% of its reserves are categorized as “Cash and Cash Equivalents and Other Short-Term Deposits.” Of this, 76.4% are US Treasury bills, 11% are overnight reverse repurchase agreements, and 11% are money market funds.
The Current State of the Stablecoin Ecosystem
Stablecoins currently account for 7.2% of the total crypto market capitalization, amounting to $132 billion. This is a decrease from the 16-17% market share held by stablecoins in 2022. Tether, however, continues to dominate the stablecoin market with nearly 70% market share. Over the past year, its supply has grown by almost 40%, while its major competitors have seen a decline.
For instance, the supply of Circle’s USDC has contracted by 44% over the past year, reaching its lowest since June 2021. With $24.8 billion in circulation, it holds a market share of nearly 19%. MakerDAO’s DAI and TrueUSD (TUSD) follow, with $5.3 billion and $2.3 billion in circulation, respectively.
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