Tether, the prominent stablecoin issuer, has achieved a significant milestone as its market capitalization surpassed the previous record of $83.2 billion, set in May 2022. This achievement comes as Tether's market value has experienced a remarkable surge of 27.15% in the past 186 days, rising from a low of $65.43 billion at the end of November 2022.
The recent surge in Tether's market cap to $83.23 billion marks a new high for the stablecoin, surpassing the previous record set in May 2022. This previous peak occurred just before the Terra stablecoin UST lost its peg on May 9, 2023. At that time, USDT's market cap stood at $83.2 billion, but by June 1, 2022, it had declined to $72 billion. Following the collapse of FTX, USDT's market valuation had further dipped to $65.43 billion by the end of November 2022.
Since then, the market capitalization of USDT has experienced a steady growth parallel to the increase in the circulation of tether tokens. Over the past six months, the supply of USDT expanded, resulting in a 27.15% rise in its market valuation, equivalent to approximately $17.8 billion. In contrast, other top stablecoins such as USDC, BUSD, and DAI witnessed significant declines in their supplies. Currently, the total market capitalization of the stablecoin ecosystem is at its lowest level since September 2021.
Paolo Ardoino, the CTO of Tether, emphasized the importance of financial freedom and access, stating, "Today's numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it." He added that Tether tokens provide a secure haven for the unbanked population and enable individuals in emerging markets to preserve their purchasing power, even during times of national currency devaluation.
This recent achievement by Tether follows its foray into sustainable bitcoin mining, as the company announced in mid-May that 15% of its profits would be invested in bitcoin (BTC). Tether also unveiled its investment in Georgia-based payment processing firm Citypay.io on May 31. Additionally, Tether and African fintech company Yellow Card recently concluded Phase 1 of their Financial Literacy Tours, reaching over 10,000 young individuals in African countries such as Nigeria, Kenya, and Ghana.
