$164 Billion: Tether (USDT) Drives Stablecoin Growth to 2-Year High
08/02/2024 21:08
Major milestone reached by stablecoin market
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The stablecoin market has reached a significant milestone, soaring to a two-year high with market capitalization reaching $164 billion. This impressive growth has been driven primarily by Tether (USDT), according to data from IntoTheBlock.
Tether (USDT) currently dominates the stablecoin market, holding a commanding 70% share.
— IntoTheBlock (@intotheblock) August 1, 2024The stablecoin market cap has soared to a 2-year high of $164B, driven primarily by Tether's growth.
USDT currently dominates the market with a 70% share, while USDC holds 21%. Other stablecoins, including DAI, FDUSD, and TUSD, maintain smaller market shares.
Despite USDT's… pic.twitter.com/gMFEhE93oe
While USDT leads the pack, other stablecoins also share the market dominance. Circle stablecoin USDC holds a 21% market share, making it the second-largest stablecoin by market dominance and also by market value. Smaller players, including DAI, FDUSD and TUSD, maintain their presence with smaller market shares.
Despite USDT's overall market dominance, DAI and USDC lead in on-chain volume. DAI processes 58% of the total volume, while USDC handles 22%. This indicates that while USDT is the most widely held stablecoin, DAI and USDC are more actively used in transactions on the blockchain.
Stablecoins are a sort of cryptocurrency that normally maintains a one-to-one value with fiat currencies like the dollar. They are typically backed by cash or cash equivalents.
Tether posts $1.3 billion profit in Q2, 2024
Tether Holdings, the operator of the largest stablecoin by market cap, Tether (USDT), reported a net operating profit of $1.3 billion in the second quarter, with income from its U.S. Treasury assets helping to offset a drop in Bitcoin's value.
The market value of Tether's USDT token has risen to more than $114 billion, as demand for the stablecoin increased throughout this year's crypto boom.
Tether said it boosted its direct and indirect treasuries holdings in the quarter, bringing them to more than $97.60 billion.